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BW: iPhone’s Reluctant Gray Marketer
Tuesday, February 12th, 2008 at 3:00 PM - by John Martellaro
Of all the people making some money from the iPhone gray market, Pavel Zaboj in the Czech Republic may be the most reluctant, according to Peter Burrows at Business Week. The constant technology war that has left software hacks of the iPhone viable, then useless, has created a roller coaster ride for Mr. Zabojs business. Now, he just doesnt care anymore.
Mr, Zaboj, 36, a former mathematics student was working with banks, helping them develop software for online banking. His small company, Bladox, developed on a tiny circuit card, called a Turbo SIM, which allows a mobile phone to be used on multiple networks.
"But within a week of the iPhone launch, technophiles had figured out that the card could also unlock an iPhone, rendering it usable on networks other than the one run by AT&T, the exclusive U.S. iPhone carrier," Mr. Burrows wrote. As a result, sales boomed.
However, when hackers developed a software unlock of the iPhone, his sales plummeted. And when that was defeated by Apple, his sales again boomed out of control. Mr. Zaboj finally had to shut down his direct to customer business. Often they became angry when his suppliers couldnt keep up with the hardware, and his own deliveries were late.
"Now, Bladoxs iPhone ride has taken yet another turn," Mr. Burrows wrote. "New Jersey college student George Holz has figured out a new software-only way to unlock the iPhone, and hes giving it away for free. Its no surprise that Turbo SIM sales have plummeted again. While a few consumers are still ordering, interest from gray-market resellers has evaporated. "Lets see what Apple does" in response to Holz, Zaboj wrote in an e-mail. "But we really dont care."
Even so, its been a ride. Mr. Zaboj estimated that hes sold a total of about 30,000 of the Turbo SIMs.
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