- Apple has closed a popular loophole used when purchasing an iPhone
- Previously it allowed you to get an unlocked iPhone with carrier financing.
- The solution still works when buying an iPad
For many years, there has been something of an open secret among Apple fans who want to get a new, fully unlocked iPhone with affordable carrier financing. Now, however, Apple has put an end to this solution, much to the dismay of Apple’s user base, but there’s better news if you’re thinking about purchasing an iPad with financing.
The iPhone loophole worked like this. While buying an iPhone with carrier financing typically meant it was locked to that carrier, purchasing the same device directly from Apple’s website, even when using carrier financing, gave you an unlocked phone.
This applied to T-Mobile and Verizon contracts, although AT&T users were still locked into their carrier. It meant you could get the benefit of a generous finance offer or trade-in deal without having to stick with a single supplier until your device was paid for.
Now Apple has changed its terms. In the FAQ section on any iPhone purchase page, Apple has inserted new language: “If you choose to finance an iPhone through the AT&T Installment Plan, the T-Mobile Equipment Installment Plan, or the Verizon Device Payment Program, your iPhone will be locked to the carrier until it is paid in full.”
The change has not been well received by Apple users, who have been lamenting the more restrictive practices now in place. On Reddit, comments range from “no idea why carrier lock is still legal,” while another posted commented that the situation is “sad, I’ve been buying phones this way since 2022.”
This situation is not present in all countries. Since December 2021 in the UK, regulators have banned mobile networks from selling new phones that are locked to their network. Go to Apple’s online store in the UK and you won’t see the message about an iPhone being locked or unlocked.
Better news for iPad buyers
If you’re still interested in getting an Apple device with financing, there’s another option, as Apple just introduced a 36-month option when purchasing any of the best iPads equipped with Wi-Fi and cellular connectivity directly from Apple. This offer appears at checkout on Apple’s website and is available for iPad, iPad mini, iPad Air, and iPad Pro.
While Apple offers interest-free financing using Apple Card, that spreads the cost over 12 months. The 36-month option means your monthly payments will be lower, although you should also factor in the additional cost of cell service and any extras like an activation fee.
Your current options are AT&T or Verizon. Interestingly, however, you won’t be tied to the carrier while the payment period is ongoing, as Apple says: “You can switch carriers when you purchase an iPad directly from Apple and choose carrier financing as your payment option.” That makes this iPad very similar to the recently closed iPhone workaround, and it’s unknown if or when Apple will close this loophole.
Besides Apple, you can also buy an iPad with a 36-month financing plan from carriers. And as AppleInsider noted, this sometimes involves bill credit or other offers that reduce the cost of the iPad, meaning you could get a better deal if you don’t go through Apple, although doing so will likely mean you’ll be stuck with that carrier, rather than being free to switch when purchasing from Apple. As always with these types of things, shop around to see if you can get a bargain.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds.
