Apple closes iPhone unlocked-financing loophole; iPad workaround still works

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Apple has ended a popular loophole used when buying an iPhone

It previously let you get an unlocked iPhone on carrier finance

The workaround still works when purchasing an iPad

For many years, there’s been something of an open secret among Apple fans who want to get a new, fully unlocked iPhone deal with affordable carrier financing. Now, though, Apple has ended this workaround, much to the dismay of the Apple userbase — but there’s better news if you’re thinking of getting an iPad on finance.

The iPhone loophole worked like this. While buying an iPhone on finance from a carrier usually meant it was locked to that provider, buying the same device straight from Apple’s website — even when using carrier financing — got you an unlocked phone.

This applied to both T-Mobile and Verizon contracts, although AT&T users were still locked to their carrier. It meant that you could get the benefit of a generous financing offer or trade-in deal without having to stick with one carrier until your device was paid off.

Now, Apple has changed its terms. In the Frequently Asked Questions section on any iPhone purchase page, Apple has inserted some new language: “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.”

The change hasn’t gone down well with Apple users, who have been lamenting the more restrictive practices that are now in force. On Reddit , comments have ranged from “no idea why carrier locking is still legal,” while another posted commented that the situation is “sad, I was buying phones this way since 2022.”

This situation is not present in every country. Since December 2021 in the UK, regulators have prohibited mobile networks from selling new handsets that are locked to their network. Go to Apple’s UK online store and you won’t see the wording about an iPhone being locked or unlocked.

Better news for iPad buyers

(Image credit: Future/Jacob Krol) If you’re still interested in getting an Apple device on finance, there’s another option, as Apple has just introduced a 36-month option when buying any of the best iPads equipped with Wi-Fi and cellular connectivity direct from Apple. This offer appears at checkout on Apple’s website and is available for the 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 repayments will be lower, although you also have to factor in the additional cost of cellular service and any extras like an activation fee.

Your current options are AT&T or Verizon. Interestingly, though, you won’t be locked to the carrier while the repayment 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 deal very similar to the recently shuttered iPhone workaround, and it’s unknown if or when Apple will end this loophole.

Aside from Apple, you can also buy an iPad with a 36-month financing plan from carriers. And as noted by AppleInsider , this sometimes involves bill credit or other offers that lower the cost of the iPad, meaning you could get a better deal by not going through Apple itself — although doing so likely means you’ll be locked into using that carrier, rather than being free to switch when buying from Apple. As ever with this sort of thing, shop around to see if you can get a bargain.