The iPhone - more than it seems

Code breakers are reported to have discovered that the iPhone is capable of letting Apple and its network operators know what the user is doing with their handset.

According to weekend postings on the Hackintosh Web forum, iPhone owners have slated Apple for failing to point out the iPhone's return path information capabilities to users.

Apple, meanwhile, has reportedly pointed out that its iPhone terms of service allow it to use anonymous information on customer's usage.

The Dow Jones newswire quotes AT&T as referring requests for comments on the issue back to Apple.

The problem seems to centre on the fact that the iPhone can pass information on what software its user has loaded back to the network concerned.

To be fair to Apple, this form of remote diagnostics is nothing new, as the IMEI of most GSM/3G handsets is similarly used by the carriers for remote diagnostics, usually when the punter has a technical problem that needs solving.

This hasn't stopped iPhone users from complaining loudly in the Hackintosh forums, however...