UK carrier O2 will unlock iPhones once subscriber contracts expire, allowing customers to use the Apple device on rival networks. The decision by Telefonica chairman and CEO Matthew Key could preview how carriers respond to the shrinking number of exclusive iPhone contracts.

“Once the iPhone becomes available on other UK networks, we will allow O2 customers to unlock their iPhones, although of course they will still need to honor any outstanding contract period they have,” Key told the Times. “At the end of their contract period, they are entirely free to move to another operator.”

Verizon has released three new ads attacking AT&T, the latest labeling the iPhone as a “Misfit toy.” The ad charges the handset belongs on the “Island for Misfit Toys” because of AT&T’s lack of widespread 3G coverage. Two other Christmas-themed ads take aim at the rival carrier’s coverage.

This latest round of ads differ from Verizon’s iDon’t Droid spots which highlighted the handsets limitations. Instead, the newest ads make a point of praising the iPhone while  taking to task AT&T’s coverage.

The first worm aimed at the iPhone has appeared. The worm is described as mostly innocuous, initially targeting unsecure jailbroken iPhones in Austrialia.

The worm’s creator, a hacker identified as “ikex” switches your wallpaper for an image of Rick Astley, a 1980-era pop star. Astley, who sang the 1987 hit “Never Gonna Give You Up,” may be better known for the Internet prank known as “Rickrolling.” The bait-and-switch replaces an ordinary video with one of Astley.

In the iPhone’s case, the hacker displays “ikex is never gonna give you up,” followed by comment’s in the worm’s source code urging people to upgrade their phone’s security.

“The world’s first iPhone worm is hardly a true criminal exploit,” according to Forbes. “Instead, it seems to be half warning, half prank.” In the source code, the hacker wrote: “People are stupid, and this is to prove it so.” The worm affects only iPhones using the default SSH password allowing phone-to-phone file transfers.

Transport in Switzerland not only runs on time, but you can buy tickets with your iPhone.

The latest version of the SBB mobile app lets travelers buy e-tickets for trains and all public transport, so you can get off the train in Lugano and catch a bus for Mendrisio without missing a beat.

Users first register with the railway company site to buy tickets via credit card for trains and buses, including day and bike passes.

The app, offered gratis on iTunes, comes in German, French, Italian and English. It also offers timetables, a “take me home” GPS function and has a crowd predictor so you know when to stop in a cafe and wait for the next one.

Convert your mild-mannered Mac Pro into a hard drive speed demon.  Stuff it with drives fast enough to work with full-quality, uncompressed video. Get more than 300 MB/s on your internal drives! It’s so easy even I can do it!

I’ve been working in video production for the last 20+ years. When you’re working with video you need as much storage space as you can afford. You need a badass computer with big fat hard drives that scream.

You think you might wanna Hot Rod your Mac Pro?  This easy, step-by-step guide will show you how.

Tim Langdell‘s back, and this time he’s mad(der than a bag of spanners). Today, Nalin Sharma’s Killer Edge Racing is the victim. The short version: like with Mobigame’s Edge, Langdell claims Nalin’s game is riffing off Edge’s ‘famous’ marks; additionally, Pocket Gamer reports that Langdell’s moved to register Killer Edge Racing and Killer Edge Racers, despite Killer Edge having its roots back in 2005, way before Edge Games claimed to be working on a racing game of its own. (It’s since released Racers—and the word ‘released’ is used here in its loosest possible sense—see ChaosEdge for the full story. But given that Racers is a redressed PC game from a liquidated company and is ‘released’ on home-burned DVDR and is not on iPhone, there’s no possibility of confusion.)

Of course, Apple will continue to hide behind the DMCA in these cases, saying it’s doing what it’s doing for legal reasons. But as this case and the one regarding StoneLoops! of Jurassica show, Apple’s going to start looking foolish if it doesn’t implement some kind of robust background check and a longer process of investigation/arbitration/settlement prior to yanking a game. A dispute policy is utterly essential, but the one currently in place is clearly open to abuse.

Here’s hoping Sharma manages to get his game back on the App Store without compromising the brand he’s been using for five years, and that EA’s case with Langdell next year reaches a conclusion that satisfies the indie developers regularly under fire from his trolling actions (oh, and the 15-year-old girls on DeviantArt he steals artwork from to advertise his games that don’t actually exist).

Serious craft from Japan’s Mobile Art Lab in transforming the iPhone into an amazing interactive image in a children’s story book from the future. I love it. All kids should get one for Christmas.

You can read what it’s all about in this Google Translation of their page.

Via dsonz

Programmer John Carmack helped bring Commander Keen, Wolfenstein 3D, Doom and Quake into the world.

Getting his games on the iPhone was not so easy.

“My relationship with Apple has been long standing, but it’s a roller coaster ride,” he told web site Kotaku. “At the highest level of Apple, in their heart of hearts,” Carmack said. “They’re not proud of the iPhone being a game machine, they wish it was something else.”

However, the popularity of gaming on the iPhone has forced Apple to think different(ly).
And, now that former collaborator Graeme Devine has gone to work for the iPhone Game Technologies division, iPhone games may get the respect they deserve.

Carmack calls Devine his “man on the inside…a real developer and I understand everything he is saying.”
Via Kotaku

We close out the week with deals on iMacs, including a desktop Mac with 3.06 GHz processor, 27-inch screen, 8GB of Ram, plus Parallels with Windows 7 for $1,977. Also on tap: a number of iPhone cases and a deal on VMWare’s Fusion 3 for the Mac.

For details on these and other bargains (such as Apple’s 500GB Time Capsule), check out CoM’s “Daily Deals” page after the jump.

Apple is the defendant in a number of lawsuits, the latest from Nokia. However, a bizarre lawsuit has appeared, naming the Cupertino, Calif. company and ‘Sex in the City’ actress Sara Jessica Parker in a lawsuit claiming the two attempted to steal trade secrets involving the iPhone, iPod and iTunes.

The lawsuit brought by Miami, Fla. resident Franz A. Wakefield claims after a 1989 meeting with Parker, the self-described “trade secret and copyright owner” “made a trade secret deal” with Parker to commercialize the iPod classic, nano, mini, shuffle, video, touch and photo, along with iTunes and the iPhone. As part of the deal, Parker supposedly would get 2 percent of gross revenue. Wakefield, who claims he named all of the products 20 years before their release by Apple, asked the FBI to watch over his security, according to the lawsuit.

With hackers feasting on the iPhone, Apple appears to be looking for a new sheriff. The Cupertino, Calif. company is advertising for an “iPhone Security Manager” passionate about understanding security exploits. The move may be aimed at the latest round of jailbreak software released on the Internet.

Appearing Oct. 16 on Apple’s Web site, the ad seeks “a very technical and hands-on leader, someone with a passion for understanding security exploits and coming up with innovative methods to create secure platforms.” The chief goal for the new security chief: to “set the roadmap for the iPhone OS platform security.”

Pssst: If you want to get in on the iPhone app business, there’s one for sale on eBay.

The starting bid for JBMJBM, LLC. — an app factory with 87 approved ones so far — is $100,000 and ends Saturday, Nov. 14

Top-selling titles include Friday Night Lights, iSpy Game, iReferee, iSexyRef (pictured above, which helps muddled sports fans remember the rules), iSexyRef2, Pro Rodeo Fan, Sit Up Counter and Shake 2 Count.

Buy the developer out and you get 87 applications currently listed on iTunes plus all application assets which include source code files, website files and all collateral.

Those crazy MacHeisters are at it again, and this time the deal is even harder to resist.

The first ever MacHeist Nano won’t cost you a penny. You can download, without charge, fully licensed copies of ShoveBox, WriteRoom, Twitterific, TinyGrab, and Hordes of Orcs. If 500,000 people take part (which I think is a pretty safe bet), they’ll throw in a copy of Mariner Write as well.

Sweet deal? I reckon. All of these are great apps. What’s the catch?

A couple of weeks back, I wrote Temporarily Get More iPhone Home Screens Via Cunning Bug Exploit, but had heard staying away from the iTunes Applications tab within my iPhone was probably a Very Good Idea. Reader Larry Pressnell noted that since the most recent iTunes update, his extra screens have been accessible in iTunes.

Since I needed to add some apps to my device, I decided to take the plunge earlier and, sure enough, my experience mirrored Larry’s: 11 home screens were shown, and extra ones were dimmed—see the grab above. Interestingly, items could be dragged from these ‘extra’ screens to the standard ones, with no problems, and a full sync didn’t find my extra pages vanishing into the ether. Whether this has anything to do with Voice Memos (the app used to get extra screens in the first place) being the last app on my final page, or the fact I’ve yet to update my iPhone OS to the latest point release, I’ve no idea.

Are you having fun with extra pages and managing to successfully rearrange your apps in iTunes? If so, let us know in the comments!

Sure, I could write a whole How-To on rolling your own “Back To My Mac.” It involves port forwarding, obtaining a Dynamic DNS, blah blah blah.

Or you could use the iPhone app LogMeIn Ignition [iTunes Link] to remotely access to your Mac or PC in three steps.

If you liked Wednesday’s interview with Apple ad man Ken Segall, just wait until you see what we’ve got coming next week.

We have an exclusive interview with one of the top people in the Apple story. I’d say they were number 3: the third most influential person in Apple’s history.

This is the first time they spoken publicly about Apple in many, many years. They have some good stories, a lot of fascinating insights, and a couple of surprises.

Can you guess who it is?

Apple today opened the first of a series of stores planned for Paris. The first, located near the famous Louvre art museum, coincided with the release of the Musee du Louvre iPhone app showcasing among other exhibits, Leonardo da Vinci’s Mona Lisa.

The Paris store, first reported in 2008, includes a 7,700-square foot two-story layout with diamond-shaped windows.

Today’s deals include MacBook Pro laptops with 15-inch screen and 1.83 GHz processor starting at $779.99. Next, buy an iPhone accessory at the PC Micro Store and get a free Lux iPhone leather holster. Finally, the Apple Store is offering its 30-inch Cinema HD widescreen LCD displays.

For details on these and other bargains (such as new price drops at the App Store on iPhone or iPod touch apps), check out the CoM “Daily Deals” page after the jump.

Apple co-founder Steve Jobs was named “CEO of the Decade” by Fortune Magazine. The magazine calls the 2000s “the decade of Steve.”

Despite surviving a very public death watch, being tossed out of his own company in the 1980s and what Fortune calls “his own often unpleasant demeanor,” Jobs “has transformed American business.”

Apple’s come-back under Jobs spans 2000, when the company was worth $5 billion through today’s $170 billion valuation, edging out even the mega-bucks of Internet giant Google. In August, Apple reported having $31.1 billion in cash, a record for a technology company. Over that period, the Cupertino, Calif. company has become involved in music, videos and cell phones.

This is a great idea, and bound to go down very well with your kids.

Balloons is simple: you launch a virtual balloon into the air from your phone. You add a photo and a text message to the label that dangles below the balloon, and send it off.

Anyone with the Balloons app can catch that balloon and add their own message. If you shell out for the paid version, you can track the balloons you’ve launched and see what other people have added to them.

To celebrate and set things off, we’ve created a Cult of Mac balloon for you to catch. It’s purple with green stripes, and has a photo of the Cult home page at the top. If you catch it, let us know what you think about Balloons.

This is a particularly friendly application. I can see school classes all over the world launching balloons to make contacts in other schools. And Shiny development have wisely kept the choice of balloons fairly limited to start with; I wouldn’t be surprised to see custom balloons appearing soon, as an in-app purchase.

The Droid provides Verizon Wireless a ‘more credible alternative’ to Apple’s iPhone, according to Walt Mossberg, a technology columnist for the Wall Street Journal.

“Like the iPhone, the Droid is really a powerful handheld computer that happens to make phone calls,” Mossberg wrote at All Things Digital. After testing a review version of the Droid, the Wall Street Journal writer told readers the Motorola-made device using Google’s Android 2.0 software has some advantage, as well as disadvantages to the iPhone.

The mystery object in Monday’s contest is a Quadra 700. (Yes, the image was flipped in an effort to make it a slightly more challenging).

Winner named after the jump.

Virgin’s new Flying Without Fear app — an interactive guide to easing panic — left us with a few questions that we got answered by Mickey Beyer-Clausen, who co-developed the app for Mental Workout.

CoM: Can you use the app during take off and landing?

MBC: Unfortunately, passengers cannot use any electronic device – including the iPhone in airplane mode – during take-off and landing but the app is developed to prepare users for flight whereby making the brief “no electronics” period at the beginning and end of the flight more manageable.

The panic button is intended to be used during the flight when turbulence is encountered or other events occur which make the user uncomfortable.