New Apple update disabling unlocked iPhones?

In a move that could have serious implications on iPhone users around the world, Apple on Thursday released iPhone software update version 1.1.1, which adds access to the Wi-Fi iTunes Music Store and several other features.

Along with the iTunes store, the 152MB update also increases speakerphone and receiver volume; adds a Home Button double-click shortcut feature; adds a space bar double-tap shortcut that lets the iPhone intelligently insert a period or space; and allows Mail attachments to be viewable in portrait and landscape, among many other updates.

According to reports, firmware version 1.1.1 restores the unlocked iPhone back to its pre-activation state and so far, no one has been able to reactivate the device with the original AT&T SIM card. Ostensibly, these updated iPhones are only capable of making emergency calls.

  • Stocks and cities in Stocks and Weather can be re-ordered
  • Apple Bluetooth Headset battery status in the Status Bar
  • Support for TV Out
  • Preference to turn off EDGE/GPRS when roaming internationally
  • New Passcode lock time intervals
  • Adjustable alert volume

The new update also fixed ten security holes and Bluetooth compatibility issues.