What most analysts and others don't get is that this lost revenue is really those people that don't want the features that Apple HAS improved on and WILL improve upon!! That is, each 2 year agreement gives Apple some income to devote money to improving the software product of the iPhone whereas in other 2 year agreements ANY improvement REQUIRES a new 2 year agreement. So the revenue sharing the Apple does is now changing the dynamics of the cell phone industry.

CK, Anywhere USA,

Yes, I'll bet Nokia, MicroSoft, Samsung, Motorola, et al are just so happy that Apple is selling those black market phones everywhere instead of buying their phones. Apple's iPhone is certainly DOOMED now that there is a HUGE black market for them everywhere.

C'mon folks, Apple is now growing market-share where it doesn't even have markets! And Apple is creating a bigger market for developers who buy the SDK and Apple gets to keep production of iPhones ramped up which will help it drive the costs down and recoup the R&D costs!

Also, one more thing. No phone company in the U.S. has ever let customers activate purchased phones at their leisure, like the iPhone. Some people could just be waiting till their previous contracts expire.

Apple is selling 20K iPhones a day at a sustained rate according to their conference call. Black market, gray market, white market, their competitors should be very afraid. Wait till they have a couple more models to cover multiple price points.

Timothy Bandy, Huntsville, USA

I would think Apple was counting on this happening otherwise it have made every customer ativate right away like any other exclusive phone. I would predict that soon it will sell a more expensive unblocked version of the iPhone to balance for the accounts lost revenues. Apple will probable offer the better versions for account only clients leaving the older versions unlocked.

Once more it was a master marketing strategy.

Aleyva, Miami, Florida

Shouldnt have made the Iphones cost an arm and a leg

Tom, Manchester,

Ridiculous, all these comments about "unlocked" phones and "lost revenue". Think about it. What is the alternative for Apple? Ban the sales of the iPhone completely if it is not activated immediately to shut out the "unlocked" market? It is still incremental revenue and profit to Apple. Apple did apply some policies to slow down the excessive sale of iPhones over the holiday season to a few, and no cash payment etc. I am not sure if this is still the rule now but if there is no supply constraint, why not? Who cares what people do with the iPhones? Remember that we are in the midst of a paradigm shift in the traditional mobile phone business model and Apple, right in the centre of it needs to work with the vested interests of several parties to ensure this model works.

TheBoots, Short Hills, USA/NJ