Apple ends unlocked iPhone workaround on carrier financing

Apple is changing how carrier-financed iPhones work: if you buy through Apple and use Verizon or T-Mobile financing, the device will now be locked to that carrier until it is paid in full. That closes a longtime workaround that had let customers finance an iPhone through those carriers while still receiving an unlocked device.

According to a new Apple FAQ highlighted on Reddit, most iPhones bought from Apple remain unlocked after activation. But Apple now says that if you choose the AT&T Installment Plan, T-Mobile Equipment Installment Plan, or Verizon Device Payment Program, the iPhone will stay locked to that carrier until the balance is paid off. AT&T-financed iPhones were already locked under the previous policy.

That matters because an unlocked iPhone can be used on any compatible carrier, while a locked one cannot. It can also create headaches for international travel, since a locked phone may block users from activating a second eSIM on another network.

Apple has not explained the change. MacRumors notes that buyers had been able to combine carrier trade-in offers and promotional discounts with an unlocked iPhone, and some may have resold financed devices without completing payments. Carrier locks are commonly used to reduce that risk.

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There is one sign the transition may still be underway: Apple’s checkout flow reportedly still says Verizon- and T-Mobile-financed iPhones are unlocked. By contrast, iPhones bought outright or through Apple Card Monthly Installments remain unlocked from the start, and carrier-financed devices are unlocked once they are fully paid off.