European retailer reveals iPhone network spec

Carphone Warehouse CEO Charles Dunstone made an interesting revelation during the company's annual earnings call yesterday. Dunstone said that for the iPhone to function properly, Apple servers must reside in the operator network.

Keith McMahon of Seeking Alpha speculates that this is Apple's way of controlling the operator network distribution model and means that Apple will be getting a cut of the ongoing revenues. In addition, McMahon says that this strategy will prevent the unlocking and reflashing of the iPhone, a common practice in Europe.

For more on Apple's iPhone in Europe:
- see this article