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A team of iPhone hackers claim to have modified the new beta 2.0 firmware to make the must-have mobile work with any service provider, and run any application.
Gizmodo reports that the Pwnage development team's hack for the new firmware - which comes with the iPhone software development kit - will allow users to do 'anything'.
The claimed "true unlock" includes installing official and unofficial, 'unsigned' applications and patches, a blog post on Gizmodo said.
The development team told the website that Apple will find it "extremely hard to close this new hole".
Gizmodo said the team "told us that this is all part of their previous Pwnage project, which instead of trying to hack into the iPhone, directly patches the firmware itself to both unlock it, so you can use the iPhone with any carrier you want, and allow you to install any applications you want."