On October 22, 2009, Nokia filed a lawsuit against Apple for infringement of its GSM, UMTS and WLAN patents. Nokia alleges that Apple has been violating ten of Nokia's patents since the iPhone's initial release.
In December 2010, Reuters reported that some iPhone and iPad users were suing Apple Inc because some applications were passing user information to third-party advertisers without permission. Some makers of the applications such as Textplus4, Paper Toss, Weather Channel, Dictionary.com, Talking Tom Cat and Pumpkin Maker have also been named as co-defendants in the lawsuit.
Since April 20, 2011, a hidden unencrypted file on the iPhone and other iOS devices has been widely discussed in the media. The file, labeled "consolidated.db", constantly stores the iPhone user's movement by approximating geographic locations calculated by triangulating nearby cell phone towers, a technology proven to be inaccurate at times. The file was released with the June 2010 update of Apple's iOS4 and may contain almost one year's worth of data. Previous versions of iOS stored similar information in a file called "h-cells.plist". F-Secure discovered that the data is transmitted to Apple twice a day and postulate that Apple is using the information to construct their global location database similar to the ones constructed by Google and Skyhook throughwardriving. Nevertheless, unlike Google's "Latitude" application, which performs a similar task on Android phones, the file is not dependent upon signing a specific EULA or even the user's knowledge, but it is stated in the iPhone's 15,200 words long terms and conditions that "Apple and [their] partners and licensees may collect, use, and share precise location data, including the real-time geographic location of Apple computer or device". The file is also automatically copied onto the user's computer once synchronized with the iPhone. An open source application named "iPhoneTracker", which turns the data stored in the file into a visual map, was made available to the public in April 2011. While the file cannot be erased without jailbreaking the phone, it can be encrypted. Apple gave an official response on their web site on April 27 after questions were submitted by users, The Associated Press and others. Apple indicated that the data is a crowd-sourced location database cache, used to make location services faster, and that the volume of data retained was an error; they issued an update for iOS (version 4.3.3, or 4.2.8 for the CDMA iPhone 4) which reduced the size of the cache, stopped it being backed up to iTunes, and erased it entirely if whenever location services were turned off.
Apple tightly controls certain aspects of the iPhone. The hacker community has found many workarounds, most of which are disallowed by Apple and threaten to void the device's warranty. "Jailbreaking" allows users to install apps not available on the App Store or modify basic functionality. SIM unlocking allows the iPhone to be used on a different carrier's network.
The iPhone normally prevents access to its media player and web features unless it has also been activated as a phone with an authorized carrier. On July 3, 2007,Jon Lech Johansen reported on his blog that he had successfully bypassed this requirement and unlocked the iPhone's other features with a combination of custom software and modification of the iTunes binary. He published the software and offsets for others to use.
Unlike the original, the iPhone 3G must be activated in the store in most countries. This makes the iPhone 3G more difficult, but not impossible, to hack. The need for in-store activation, as well as the huge number of first-generation iPhone and iPod Touch users upgrading to iPhone OS 2.0, caused a worldwide overload of Apple's servers on July 11, 2008, the day on which both the iPhone 3G and iPhone OS 2.0 updates as well as MobileMe were released. After the update, devices were required to connect to Apple's servers to authenticate the update, causing many devices to be temporarily unusable. A year later, Apple released the 3.0 software two days before the iPhone 3GS to avoid such issues.
Users on the O2 network in the United Kingdom, however, can buy the phone online and activate it via iTunes as with the previous model. Even where not required, vendors usually offer activation for the buyer's convenience. In the U.S., Apple has begun to offer free shipping on both the iPhone 3G and the iPhone 3GS (when available), reversing the in-store activation requirement. Best Buy and Wal-Mart will also sell the iPhone.
The iPhone's operating system is designed to only run software that has an Apple-approved cryptographic signature. This restriction can be overcome by "jailbreaking" the phone, which involves replacing the iPhone's firmware with a slightly modified version that does not enforce the signature check. Doing so may be a circumvention of Apple's technical protection measures. Apple, in a statement to the United States Copyright Office in response to EFF lobbying for a DMCA exception for this kind of hacking, claimed that jailbreaking the iPhone would be copyright infringement due to the necessary modification of system software. However in 2010 Jailbreaking was declared officially legal in the US by the DMCA. Jailbroken iPhones may be susceptible to computer viruses, but few such incidents have been reported.
Most iPhones were and are still sold with a SIM lock, which restricts the use of the phone to one particular carrier, a common practice with subsidized GSMphones. Unlike most GSM phones however, the phone cannot be officially unlocked by entering a code. The locked/unlocked state is maintained on Apple's servers per IMEI and is set when the iPhone is activated.
While the iPhone was initially sold in the US only on the AT&T network with a SIM lock in place, various hackers have found methods to "unlock" the phone from a specific network. Although AT&T, Sprint and Verizon are the only authorized iPhone carriers in the United States, unlocked iPhones can be used with other carriers after unlocking. More than a quarter of the original iPhones sold in the United States were not registered with AT&T. Apple speculates that they were likely shipped overseas and unlocked, a lucrative market before the iPhone 3G's worldwide release. iPhones are unlocked by users who wish to use networks other than AT&T or Verizon's.
AT&T has stated that the "iPhone cannot be unlocked, even if you are out of contract". On March 26, 2009, AT&T in the United States began selling the iPhone without a contract, though still SIM-locked to their network. The up-front purchase price of such iPhone units is often twice as expensive as those bundled with contracts. Outside of the United States, policies differ, especially in US territories and insular areas like Guam, where GTA TeleGuamis the exclusive carrier for the iPhone, since neither AT&T nor Verizon have a presence in the area.
In the United Kingdom, carriers O2, Orange, 3, Vodafone, T-Mobile, as well as MVNO Tesco Mobile sell the device under subsidised contracts, or for use on pay as you go. They are locked to network initially, though are usually able to be unlocked either after a certain period of contract length has passed, or for a small fee. The iPhone 4 in the UK is also currently sold unlocked without a contract for full retail price for use on any network the user chooses, but only when bought directly from Apple (either online or in their physical shops).
Five major carriers in Australia, (Three, Optus, Telstra, Virgin Mobile, and Vodafone), offer legitimate unlocking, now at no cost for all iPhone devices, both current and prior models. The iPhone 3GS and the iPhone 4 can also be bought unlocked from a Apple Retail Store, or the Apple Online Store.
Internationally, policies vary, but many carriers sell the iPhone unlocked for full retail price. The IPhone 5, which will be released 11.11.2011, will not feature any kind of SIM unlocking.