Apple Upgrade iPhones lock you into the big three providers
Key Points:
- Apple launched the Apple Upgrade program, allowing customers to lease iPhones, MacBooks, and other devices with monthly payments instead of a large upfront cost.
- A key restriction in the program requires customers to have an account with one of the three major US carriers—AT&T, Verizon, or T-Mobile—to lease an iPhone.
- Although the leased iPhones are technically unlocked, activation is limited to these major carriers, preventing use with smaller carriers.
- Cybersecurity analyst John Gruber suggests this rule helps prevent fraud since major carriers conduct thorough risk assessments before opening accounts.
- Additionally, a former Apple employee claims Apple negotiates multi-million dollar deals with these carriers annually, which likely influence such program restrictions.