I have read a lot of conflicting information about how "unlocked" the phones sold through the Apple Upgrade Program really are. I talked to the Apple online chat people today. If what they said was correct, their definition of unlocked and mine are not the same. My chat is below, but to summarize, all they really would confirm is that the phone is unlocked to use with your carrier. By that definition, any phone would be unlocked, so it doesn't make a lot of sense. It seems like the only "unlocked" thing they will confirm is that you can pick your carrier when you get to the store. If that's all it is, Apple should know better than to make a point of advertising that the phone is unlocked as if it's a feature. If anyone else knows more about this, I would be interested to hear it, because right now it seems like one of the big selling points for the upgrade program for me isn't that great. It sounds like my best bet if I want a truly unlocked phone, as in one I can switch SIMs in and out of, is to buy an AT&T (my carrier) phone at full price at an Apple store, where it should actually be unlocked or, at worst, AT&T would unlock it for me without a long delay. **** Me: I know the phone has to be activated on a carrier. But will it remain unlocked to be used with other carriers after activation? Can I use it with a carrier outside the U.S. while traveling? Apple: With the new iPhone Upgrade Program it will remain unlocked but it is connected to a carrier so it will not work with another SIM card. Me: I'm not sure I understand. In what way is it unlocked if it can't work with another SIM? Apple: It is carrier sales only at this time. Me: I understand that I need to activate it on my carrier at the time of purchase. But if it is unlocked, then I should be able to use it with another SIM also? Apple: I know it is confusing, but at this time they are unlocked with a US carrier. They are not guaranteed to work outside of the US or with another Carrier. Me: So does that mean I can use with another US carrier? For example, activate with AT&T but also use with a T-Mobile SIM? Apple: It gives you the freedom to switch carriers, yes. But you will need to switch your plan to that carrier. Me: I currently have AT&T as the carrier I would activate the phone with. But I also have a plan with T-Mobile. With my current unlocked phone, I can switch the SIMs out and go back and forth. I can also use a foreign carrier. I am trying to find out if I would be able to do this with a phone purchased with the Apple Upgrade Program. Apple: If you set you phone up with Verizon and switch to an ATT Sim you will need to switch you account to ATT for the phone to work. They are unlocked but to the Carrier you set it up with only. Not like a complete unlock program. It gives you the freedom to switch carriers when ever you like. Me: I think Verizon may work differently. But usually the GSM carriers (AT&T, T-Mobile, etc.) can be switched with switching a SIM. That is how it has been with other unlocked phones I have had. It sounds like maybe what you mean is not so much that it is unlocked but that you are free to switch since you don't have a contract with the carrier? Apple: They are not normal unlocked use with any carrier phones. They are unlocked connected to a carrier. You can not use another SIM without switching carriers. They will not work overseas at this time. Yes exactly they are unlocked but you still have to use it with a carrier.