Apple iPhone Heading for Class Action Lawsuit?

It is all about iPhone firmware update 1.1.1. This new firmware update from Apple disables most of the SIM unlocking methods that were used to allow the iPhone on non-AT&T network or simply use the iPhone without subscribing to AT&T. It also disables using of third party applications on iPhone. If you dare to use non-AT&T network or use third-party applications on iPhone, Apple, with this update(?), will convert your iPhone into a glorified brick. Feel free to throw it back in Apple’s headquarters or see if you find old Steve. But will this be enough to rattle iFans enough to slap Apple with a class action lawsuit?

A MacRumors user myndex is trying to gather respondents for a class action lawsuit against Apple. He, or his lawyer, has identified three potential classes:

1. Persons who own an iPhone and used software to access the available flash drive space on the iPhone, *without* modifying iPhone firmware nor installing 3rd party applications on the iPhone itself. Among this class are users of the commercial product “iPhoneDrive”, a third party application that allows the iPhone to be used as a storage device, but that does not alter iPhone firmware nor install executables onto the iPhone itself.

Persons of this class must have been refused warranty service by Apple or its associated Apple stores, with such refusal being due to respondent’s use of iPhoneDrive, iToner, or other external application that does NOT alter firmware.

2. Persons who own an iPhone, and who installed 3rd party software on the iPhone for the purpose of expanding its functionality. Examples of such programs are “Installer.app” and the native applications that it installs into the iPhone.

Persons of this class must have restored their iPhone firmware back to factory defaults, or be seeking services for a non-firmware nor software issue, such as a defective touch screen, defective battery, or other purely hardware failure under warranty, and have been refused service due to their past usage of third party applications.

3. Persons who unlocked their iPhone to allow for its use on networks other than ATT.

Persons of this class must have restored their iPhone firmware back to factory defaults, or be seeking services for a non-firmware nor software issue, such as a defective touch screen, defective battery, or other purely hardware failure under warranty, and have been refused service due to their past usage of third party applications.

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Myndex doesn’t provide contact information in his forum profile nor an email address to contact which makes it really hard to contact him. I wonder if the admin’s removed his email. He is an angry customer. Previously he floated the idea of a class action lawsuit when using iPhoneDrive apparently voided his warranty. In any case he makes a valid point.

I think Apple is trampling upon users right to modify their phone as they please, including installing any software of their choice. Apple can rightly void the warranty for software in that case but voiding hardware warranty, unless it can be proven to be caused by the third party software, doesn’t make any sense.

A phone is a commodity and should be usable with any carrier. However it is norm in USA to tie most phones with specific carriers. I am surprised how a lawsuit happy country as USA tolerated this for so long. The only explanation is that it has been legally tested before. I suspect Apple may be able to stand its ground with ease there.
BTW: You may be surprised to know that in India and probably in Europe too, phones are sold independently of SIM cards, unlike USA.

What sucks most is that Apple bundled this crippling update with an essential security update. It is either your ability to use third-party software and non-AT&T service providers or iPhone security; you choose. Personally I would choose not to use iPhone at all, but that’s just me.

The biggest advantage for Apple is yet another Apple product: iFan or iFanBoy. iFans are a group of rabidly loyal Apple fan. Fortunately for Apple they outnumber Apple critics in forums and in general over the internet, which masks the actual level of discontent.

However not everyone is an Apple iFanBoy or iFanGirl. As you know in early September, Apple dropped the price of its 8GB iPhone by $200, while dropping the 4GB model altogether. Dongmei Li of New York filed a suit against Apple & AT&T in New York federal court. She said that early purchasers were harmed because they cannot resell their iPhones for the same profit as later purchasers. Li purchased the 4GB iPhone and she accuses Apple of abandoning that model and locking customers into a two-year deal with AT&T.

Are there enough legal grounds for a class action lawsuit against Apple?
Personally I think that even though Apple’s move is anti-user and in some way unethical, it may be on solid legal grounds. Apple’s EULA is pretty clear and well defined. iPhone EULA states that a potentially warranty-voiding step includes “any means other than through software that is provided by Apple for accessing the Service. You shall not access or attempt to access an Account that you are not authorized to access. You agree not to modify the software in any manner or form, or to use modified versions.”
The only weak point I see is on implied warranties of merchantability of the device. After all iPhone is not a software.

What do you think?