apple news/media reports
08/03/2007, 5:20pm, EDT
Friday, August 3rd
First native non-Apple iPhone app released
Independent software developers have successfully created the very first full-fledged native iPhone application, complete with its own icon on the iPhone menu and a user-interface that is not powered by Web 2.0 technology. The application, called MobileTerminal, is terminal emulation software developed without an official Software Development Kit (SDK) from Apple. Google Code is hosting the application and so far Apple hasn't moved to take down the rogue software as it has with previous hacks involving its closely-guarded Mac OS X operating system. The lack of movement on Apple's part could signal a certain tolerance for true third-party application development, or may only prove to be an incubation period for forthcoming actions on the part of the Cupertino-based company.
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I can see that they may be able to stop someone hosting a downloadable app.
Yes, through the license agreement you sign with AT&T, or the agreement that comes with the OS on the phone (they can, I haven't read the agreements, so I don't know if that language is in there).
Also, they can 'restrict' it in the sense of either disabling it through another software update, or not allowing a software update to run because the phone has been changed. Or, they could make changes to the OS that causes the phone to act erratically with the software installed, thus telling people "See, that's why we don't want third-party software! It makes the phone unstable!" (regardless of stability claims continually made about OS X)
The license agreement cannot prevent you from installing your own apps either.
Someone who claims it can needs to follow up such an outrageous and ludicrous supposition with something other than take their word for it.
the can certainly not support it, and even disable it with software updates...that much is true.