Apple shuts unlocked iPhone financing loophole

Apple has tightened its iPhone financing rules, closing a workaround that had let some buyers get an unlocked iPhone while still using Verizon or T-Mobile payment plans.

As Reddit users noticed on Wednesday, Apple updated its iPhone 17 sales FAQ. The revised answer to the question, “Will my new iPhone be unlocked?”, now says: “If you choose to finance an iPhone through the AT&T Installment Plan, T-Mobile Equipment Installment Plan or Verizon Device Payment Program, your iPhone will be locked to the carrier until paid in full.”

Before the change, buyers could select an unlocked phone while financing through T-Mobile or Verizon, then use that device with another carrier while continuing to make payments. That option now appears to be gone.

CNET Managing Editor of Mobile David Lumb said the update brings Verizon and T-Mobile in line with AT&T.

“Apple’s move puts Verizon and T-Mobile customers under the same conditions as AT&T’s. Most carrier subscribers won’t notice a difference, as they likely would’ve stuck with a carrier until they paid off their phone anyway — but it is unfortunate to see customers locked in to their carriers more than they were before.”

A representative from Apple did not immediately respond to CNET’s request for comment.

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Buyers can still get an unlocked iPhone, but the path is narrower. Apple continues to sell unlocked models directly, including through Apple’s payment plans. Third-party retailers may also offer unlocked devices, though Lumb said shoppers should check whether those phones are tied to a specific carrier partnership.

The tradeoff is price: buying unlocked outside carrier financing may mean missing out on the discounts and rebates carriers often bundle with their own installment plans.