iPhone jailbreaking was made legal by a new DMCA exception ruling. Apple [AAPL] has now made an official response about the ruling and essentially say that your warranty will be void if doing it.
So although jailbreaking is actually legal now, Apple will void the warranty of your iPhone if you do it. Also Apple mention that jailbreaking opens up your handset to a number of problems in that it can ruin the user experience in that identity can be stolen and viruses can be spread.
It is estimated that 10 million iPhone have been jailbroken which makes for quite a big market for developers who cannot get apps in to the app store for various reasons.
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