Starting in August, Apple says that it will no longer allow U.S. customers to purchase SIM-free iPhone models using Apple Card Monthly Installments. Instead, a carrier connection with Verizon, AT&T, or T-Mobile will be required.
Previously, Apple allowed buyers to purchase an iPhone with the “Connect to a carrier later” option. This option means users are free to use the iPhone without a cellular connection or via any carrier of their choosing. For instance, you could connect an iPhone purchased with this option to a carrier such as Mint Mobile or Google Fi.
Starting on August 15, however, Apple will require that any iPhone purchased via Apple Card Monthly Installments be connected to AT&T, T-Mobile, or Verizon at the time of setup. This effectively blocks iPhones bought with Apple Card Monthly Installments from being used with other carriers.
The “Connect to a carrier later” option will no longer be available for purchases financed with Apple Card Monthly Installments. This was already the case with iPhones purchased from Apple Stores, but it now applies to online purchases as well. Note that the iPhones will still be unlocked, but the carrier connection will be required at the time of setup.
MacDailyNews Take: Sounds like the big three carriers were feeling the pinch and Apple changed this policy to assuage them. Hopefully, this isn’t a long-lasting change as no every iPhone users wants (or needs) to use Verizon, AT&T, or T-Mobile,
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That’s really unfortunate. I was planning on buying a new iPhone to give to a friend as a Christmas present this coming December using monthly installments. I guess buying an iPhone as a gift using monthly installments is no longer possible unless I choose the carrier for the recipient of my gift.
Or just buy it outright and skip the Apple Card shenanigans
Apple Card gets you a 3% rebate using the card……pay it off in full and take the 3% cash back…
I think the FTC should investigate this. Most working class people buy an iPhone on monthly installments. This means that they are “required” to buy a phone that is connected to the “Telecom Oligopoly” (Verizon, ATT, T-Mobile), essentially ‘blocking’ them from access to low cost plans like Mint, Ting, etc. . . . this will just further the revenues of the oligopoly, and block out smaller competitors.
This only applies to purchase using the Apple Card system for BNPL purchase