The iPhoneSIMFree team have finally cracked the Apple iPhone's SIM lock keeping it exclusive to AT&T, and a Filipino hacker has even come up with his own solution:

You read that right: they've unlocked the iPhone.

iPhoneSIMFree's solution looks more seamless, because the Philippine solution needs some special hardware and technical labor (via Cellphone9):

For me to be able to make local, non-roaming phone calls on my iPhone, I'll need to find a v.1 SIM that is still active (i.e. registered and functioning with the carrier). v.1 sims are the old generation cards, the kind that can hold up to 100 contacts only. That kind of SIM is not as secure as the newer ones, hence the ability to be hacked. dubeditions has tried on almost every kind of SIM card, and is still trying others.

In any case, it's interesting to see how Apple and AT&T will react to this unfortunate (for them) development. After all, no one would give up a cash cow that easily. Will they sue iPhoneSIMFree.com (though I'm sure the hackers over there have contingencies for this)? Will they come up with an update that invalidates this unlock? Will they threaten service providers with an iPhone-ban if they don't comply to Apple's anti-unlock campaign?

Only time will tell, so let's see what develops over the next few days.