Will iPhones via China Mobile be unlocked?

Unlocked, semi-legal iPhones have proliferated in China since Apple failed to make a deal with a Chinese carrier. Now that AT&T will offer an expensive solution for those wanting iPhones in the United States on different carriers, will the unlocked market be...unlocked?

For $699, the new 16GB iPhone 3G will be available to non-AT&T customers in the United States. As I've reported, China Mobile and Apple are now in talks that are more likely to bear fruit. This post is based on a few questions I really can't answer. Let's have them.

1. Will truly unlocked iPhones still be available in China? I put a lot of faith in the efforts of crackers to defeat whatever Apple comes up with, but I would personally be wary of getting an unlocked iPhone that might not accept upgrades, mostly because iPhone software needs upgrades. For example, I've been baffled--while using friends' phones--by the apparent impossibility of sending a vCard from one address book to another person using iPhone's mail application.
2. If the China Mobile-Apple deal goes through, is it possible that "legitimate" iPhones will be locked to China Mobile and useless in other countries? Would top-market Chinese users, who are used to switching SIM cards at will and picking up multiple SIMs at home and in other countries (as well as in Hong Kong), stand for this? I don't know the technology well enough to answer this one.
3. Does Apple sell unlocked iPhones anywhere on Earth? If so, I want one.
4. And since I'm not an expert in cell phone fees, but know AT&T has raised prices for iPhone 3G service plans (and presumably for the large cost in rolling out the 3G network), is it worth $400 to get out of its clutches over two years and take on a reasonable plan with another GSM carrier in the United States? If you divide $400 by 24 months, a person would only need to find a plan that is $17/month cheaper. That doesn't seem absurd, given the $70/month plus SMS cost of the starting AT&T plan.
5. And here's one for U.S. users. If you could buy a phone for much cheaper that was unlocked, but had to be semi-legally or illegally brought from China, would that scare off people concerned about product quality?

I'm going to e-mail one or two experts to see if I can get these questions answered, but in the meantime, feel free to speak up.

[James7777777]

Everyone else is reporting that for the higher price you won't have to get a contract, but the phone will still be locked to AT&T. Seems they want people to use a prepaid account with it.

[infernalman7]

Coming from Asia myself, I feel the same. Switching SIM card is actually a part of life.

[Girish Joshi]

iphones, the unlocked kind are aplenty in the world. Legal ones are sold in France by apple themselves (reqd by law) for a hefty price ($1200-1300). If they charge a huge price such as $499 for the 16G no-contract iphone, I'd be surprised if the phone is not unlocked. What way does it help Apple reach their 10million mark, if the brick is locked to AT&T and the customer does not want to be with them?
If Apple does not get a slice of the monthly revenue pie, then they should unlock the phone and let it loose in the market. I am certain that they will hit 10million mark within this quarter.

[carlhancock]

Did you do any research for this article? AT&T isn't allowing unlocked iPhones in the United States.

They are selling iPhones WITHOUT A CONTRACT for a hefty price premium. These phones don't require a 2 year commitment with AT&T but they are STILL LOCKED to AT&T and would still require being hacked in order to unlock them.

[Thomas, David]

Seems to me there's something rolling down a hill, and gaining momentum (finally). I see un-locked iPhones in the future. I just hope it's very, very soon.

[mad713dog]

If iphone ever get in chinese market, that will be unlocked, no one knows "locked" phone means over there. US keeps saying that china has no human right, at least they have right to choice the network.

[Perry_Clease]

They don' t need to lock the iPhone in China when they can lock the user.

[garybc12]

i'm from Asia also and i will hold out from buying an iPhone until an unlocked version comes out. i use AT&T so getting an iPhone should not have been a problem for me. however, i don't want to buy the 3G iPhone simply because there is no 3G coverage in my town. If AT&T will sell an iPhone without a contract AND the option of not having the $30 monthly, then I might consider getting a 3G iPhone. otherwise, I won't pay for a 3G service that I couldn't have anyway. I read somewhere that the nokia e66 is good...

[LunaticSX]

Taking on "a reasonable plan with another GSM carrier" in the U.S. would be pointless for the iPhone 3G since the only other national GSM carrier is T-Mobile and their 3G network runs at the non-standard 1700/2100Mhz combination of frequencies, which the iPhone doesn't support. T-Mobile's barely begun to roll out their 3G network, anyway. So anyone who wants to use an iPhone on T-Mobile in the U.S. might as well get a 1st gen iPhone and hack it to be unlocked, unless you really want to pay that premium just for GPS, improved battery life, and a flush headphone jack.

[lyokoleo]

Well according to apple's website on the tech specs page, the UMTS/HSDPA (aka: 3G) is 850, 1900, and 2100 MHz so you possibly COULD use the T-Mobile 3G Network! So even if you did get one to use on the T-Mobile 3G network, you still could possibly use it! They just didn't want to admit it formally that they took their own bullet, or was grazed by it.... I personally, being 17, would get one without the 2-year contract and try to hack it to use on T-Mobile's network. I had Cingular in the past and my family and i had issues with it, so we switched in 2004 and love it! Haven't had dropped calls, and roaming (except overseas, where it's $.99 a minute and free incoming text), and i have to say, everywhere I have been and used it, it has been amazing, if not better than AT&T! Sorry about that rant there... I just don't support AT&T's cause of screwing everyone over and taking their money....

[fumartinez]

You can get an UNLOCKED contract free 3g iPhone from TIM in Italy. Several European users in the Hackintosh forum have bought them in Italy and confirmed they do work on the networks of their home countries.