In less than a week since its release, Apple’s iPhone 3G has hackers trying to break open it’s supposedly full proof system. iPhone Dev Team, which is a group of hackers, has over the weekend released a ‘jailbreak’ software for the iPhone 3G. It allows iPhone 3G users to install those applications on their handsets that are not approved by Apple.

Pwnage Tool 2.0, as the software has been dubbed allows users to charter their way through an iPhone or iPod touch that has a firmware version 2.0. What it does is remove all those software controls that Apple has put in place in order to restrict users from installing independent applications. The iPhone Dev Team was quick to clarify that these softwares which are not available through the Apple’s Application Store can run alongside Apple-approved programs. 

In spite of over 10 million application downloads from Apple Store, many developers and customers seem unhappy with the strict control Apple exercises over applications that may be installed. For example, applications that run in the background are a strict no-no by Apple. Meanwhile, Apple is reaping in huge profits by taking a 30 percent cut of all applications that are being sold via the Apple Store.

 The catch with using the Pwnage software is that since it is not Apple-approved, any harm done to the device in using it makes the warranty null and void. This is big risk since you might end up potentially destroying your phone with no hopes of replacement even though it might be in the warranty period.

 iPhone Dev Team is definitely causing the people at Apple to spend sleepless nights. It remains to be seen what Apple comes up with to counter this new menace.