Verizon No Longer Plans to Sell Unlocked iPhones

[aristobrat]

What's going to happen when you buy an unlocked iPhone directly from Apple this spring? Will inserting the Verizon sim locked the phone for whatever length Verizon decides, or will the phone remain unlocked?

If someone other than Verizon is selling it unlocked, I’d be surprised if it temp locks when popping in a Verizon SIM.

The article says AT&T requires phones they (AT&T) sell to be paid off (plus a 60 day waiting period) before they drop their temporary unlock, but every AT&T iPhone that I’ve bought directly from Apple using their yearly iPhone Upgrade Plan has been unlocked from day 1.

I’d expect unlocked phones bought directly from Apple to work the same way (on all carriers). I know the Verizon temp lock is new, but apparently it’s not new on the other carriers, and I haven’t seen folks complaining that unlocked phones from Apple get relooked for a temp period.
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What a joke. All phone plans in America are a joke. We need a Robin Hood company to start up here. “RobinHoodwireless”

T-Mobile prides itself in breaking every carrier tradition that they can... if they’re temp locking US phones, there’s got to a problem with the US market...

 

[michael31986]

If someone other than Verizon is selling it unlocked, I’d be surprised if it temp locks when popping in a Verizon SIM.

The article says AT&T requires phones they (AT&T) sell to be paid off (plus a 60 day waiting period) before they drop their temporary unlock, but every AT&T iPhone that I’ve bought directly from Apple using their yearly iPhone Upgrade Plan has been unlocked from day 1.

I’d expect unlocked phones bought directly from Apple to work the same way (on all carriers). I know the Verizon temp lock is new, but apparently it’s not new on the other carriers, and I haven’t seen folks complaining that unlocked phones from Apple get relooked for a temp period.
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T-Mobile prides itself in breaking every carrier tradition that they can... if they’re temp locking US phones, there’s got to a problem with the US market...

I think the locking is for people that enroll in the networks upgrade plan. Apple upgrade allows you to have an unlocked iphone. that is the point of apple upgrade program and why so many do it.

i think this article is referreing to verizon plans no?

 

[Shirasaki]

In Australia, no carriers lock their iPhone whatsoever, maybe even in a contract. That means something I suppose?

 

[Starship67]

Obviously a difference in culture. In the UK, all iPhones sold by Apple (from day 1) are unlocked. If I’m not mistaken, buy one on any network and it will also be unlocked.

Its the same in the US if purchased from Apple and paid in full or iPhone upgrade Program.

 

[DeepIn2U]

That’s fine and dandy unless you need cellular service nation wide.

I sincerely see this as a valid argument when we're talking about capital and second largest cities in every state. Alaska and Hawaii not inclusive. I think more rural America is where the real challenge remains for T-Mobile USA, Sprint, AT&T, and everything else.

 

[RF9]

Interesting that everyone says Verizon’s prices are high. I took my Verizon plan details into a T-Mobile store (3 lines, all phones paid off), and the guy said he couldn’t come close to the price I’m paying to Verizon.

I agree. T-Mobile would save me $20 ($140) vs Verizon ($160) on my 3 lines. T-Mobile does include taxes so thare's also that. But then I'd have to pay $10 per line ($30) to upgrade to tethering and HD video which my Verizon plan includes. So $170 including tax vs $160+tax on Verizon.
All for what? I know for a fact my phones won't work in 3 places I go regularly.
Occasionally T-Mobile runs one of these "switch from Verizon" ads where you get an extra discount for a year or so. No thanks.
Now if I was 55+, I'd jump on that senior plan in a heartbeat.
If I really wanted to save money, I'd switch to XFinity wireless in order to lower my bill but stay on Verizon. I don't do this because I'm pretty cozy with Verizon's promotions, payment plans, international rates, and smart watches also on the plan and switching throws all of that into chaos.

 

[techwhiz]

The two reasons Verizon cite in the article for wanting to temporary lock phones are:
1) reduce theft of unsold phones in stores (or on their way to stores) that can be immediately resold (since they're unlocked)
2) deter people from using identify fraud to create new Verizon accounts to buy phones with that can be immediately resold (since they're unlocked)

In both cases above, Verizon is out money...

I think it'd be great if they could exclude this temporarily locking policy when someone who has had a long-standing account with them buys a new phone, but unless the person is paying with cash, there's still risk to them. I just had someone order three warranty replacements on my AT&T account, posing as me (a long-standing customer), regardless of the fact I have a 6-digit PIN on my account (in addition to a password).

In only one case is Verizon out of money.
I'm sure robbery is covered by insurance.

 

[Vegasryn]

Verizon is the best carrier in the US for network coverage and T-Mobile is not close to their coverage. The high price is worth every penny. It is not greedy as it is business.

2.3% isnt that big of a difference.

 

[RF9]

I think the locking is for people that enroll in the networks upgrade plan. Apple upgrade allows you to have an unlocked iphone. that is the point of apple upgrade program and why so many do it.

i think this article is referreing to verizon plans no?

Phones sold from Verizon, and it would be ALL of them, not just upgrade plans.
This is so when the phones are stolen from the stores (it seems like I read about a big robbery about once a month) or people get them fraudulently (impersonate me to buy a phone on my account) then they can't easily sell it overseas.
Verizon is specifically targeted because thieves know they are the easiest and one of the most valuable target for these sorts of thefts.
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2.3% isnt that big of a difference.

2.3% in land coverage? In the US? That's actually very big.
T-Mobile likes to tout percentage of population covered which is misleading since most people live in concentrated areas.

 

[jayducharme]

In other news, Verizon is greedy.

 

[jeff051177]

From reading this thread, it sounds like you guys ('mericans) can't just go into the apple store and buy an unlocked iPhone on day 1? Is that right? Because, I assume, Apple has some sort of deal with the telcos that guarantee an exclusivity period. But you can EFFECTIVELY do this by buying a phone "allocated" to verizon, which is the only telco allocated phone that's unlocked?

Therefore, Verizon "allocated" stock is being used-up by people who just want an (effectively) sim free phone on day one. Leaving genuine verizon customers unable to get their hands on one (because they can't use any other network's "allocated" handsets - because they are locked).

This, in turn, leaves Verizon with significantly fewer activations than sold handsets, which is a problem because they only really make money post-activation.

All of this nonsense about "scalping", "hoarding" and Verizon customers being disproportionately targeted by thieves (?!?!) and whatever is only really an issue because of the artificial stock restrictions put in place, caused by the locking.

Wouldn't it be easier if apple just sold (only) unlocked phones from day one - like they do in every other country? It seems like this is the cause of all the issues here. I guess the question is: why do Apple lock the phones? Do they get a kickback from the Telcos by doing so?

PS: Just talking about "cash" purchases. If you're buying a phone on credit (attached to a service plan) then locking is fair enough - as long as they will unlock for overseas travel etc, and when your contract expires (ie: when you've finished paying for it).

 

[Wags]

The FCC rules the following:

e)Handset locking prohibited. No licensee may disable features on handsets it provides to customers, to the extent such features are compliant with the licensee’s standards pursuant to paragraph (b)of this section, nor configure handsets it provides to prohibit use of such handsets on other providers’ networks.

Verizon as always with it's greediness.

No problem they have FCC Aji Pai former Verizon executive.

 

[michael31986]

Phones sold from Verizon, and it would be ALL of them, not just upgrade plans.
This is so when the phones are stolen from the stores (it seems like I read about a big robbery about once a month) or people get them fraudulently (impersonate me to buy a phone on my account) then they can't easily sell it overseas.
Verizon is specifically targeted because thieves know they are the easiest and one of the most valuable target for these sorts of thefts.
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2.3% in land coverage? In the US? That's actually very big.
T-Mobile likes to tout percentage of population covered which is misleading since most people live in concentrated areas.

but if you enroll in the iphone upgrade program and select verizon you are proving you have a verizon account. The whole point of iphone upgrade is to have unlocked iphone. so what i meant is.. yes if you go through verizon and do buy through them maybe it will be locked, but ultimately apple upgrade would still be unlocked.

 

[bwillwall]

As a Verizon customer that is happy with the service, and getting an excellent discount through work, I am glad to see this. I am hopeful that the waiting period will be 90 days or less, and this should accomplish exactly what they're stating. When I worked at the Apple Store a few years back, scalpers lined up every day to buy as many Verizon models as we would sell, just to ship them overseas. This should help a lot more Verizon customers get the phones they want, and not have so many non-verizon users trying to take them to other networks.

Apple could solve this problem by... you know actually selling unlocked devices at launch?

 

[Tech198]

This could be good, but could have drawbacks..

You start putting pressure on and people will hate it.

 

[boswald]

They should do this until the device is paid in full. After that, the customer should be free to cancel service (depending on contract/plan) and switch carriers.

 

[Brandhouse]

Verizon plans to stop selling unlocked smartphones as a way to deter criminals from stealing the devices, the company told CNET.

In Australia, and rightly so, that is anti-competitive behaviour and not allowed.

 

[5hugknight]

Says the company that just paid "Con"gress to allow them to sell all your private data on the back end, with ZERO permission asked or profit sharing offered...

 

[Nick05]

Wow. Where is the thumbs-down button? I'm guessing you are the type of person that snubs another for which model phone they have. But what would I know, I'm just a poor, jealous, hate-filled non-verizon user

For what it's worth, I live in rural Minnesota and drive to some of the most sparsely populated places in the country and T-Mobile has never let me down.

Glad to hear T-Mobile works for you. I wish it worked in more places I need it to because I did like them when I had them. I tried them again on my iPad a couple of years ago, but still had no service in too many places. I’m sort of stuck with Verizon or AT&T. I have had a better experience with Verizon’s customer service than AT&T.

 

[5hugknight]

They should do this until the device is paid in full. After that, the customer should be free to cancel service (depending on contract/plan) and switch carriers.

This is already the case. The revision is that now even Full-Price purchased phones will also be 'Locked' for a specified amount of time after purchase.

 

[SamIchi]

One of the key metrics for the health of a cellular company is "churn", which is the percentage of customers that have left, presumably to another competitor. If you have relatively high churn, it indicates that you have problems with competitiveness. If churn numbers are consistently increasing, that could be seen as an early indicator of a company's decline relative to its competitors, causing shareholders to flee and stock value to fall.

Another very significant reason why we didn't like churn is that customers who frequently hop across companies are actually serviced at a monetary loss. There is cost associated with acquiring customers (marketing, activation, customer support) and losing customers (deactivation, number porting, and customer support). When someone quits and rejoins, quits and rejoins, we actually lose money on them.

So churn is VERY important. When I worked at a cellular company, our bonuses were partly tied to churn rates.

So to get to answering your question, a phone is locked in large part because it adds another hurdle that customers have to jump over in order to switch providers. Every additional hurdle helps to keep churn down.

That makes sense in the consumer contract part, but I was wondering abbout the hardware. Does Apple ship out all unlocked phone? Or from the factory, it's already set to a provider? Also why does it matter if Verizon, or any service, if they carried prelocked phones or not? Aren't the customers already locked into contracts?

 

[ActionableMango]

That makes sense in the consumer contract part, but I was wondering abbout the hardware. Does Apple ship out all unlocked phone? Or from the factory, it's already set to a provider? Also why does it matter if Verizon, or any service, if they carried prelocked phones or not? Aren't the customers already locked into contracts?

For sure phones used to be locked at the factory when the software configuration was set. I'm not so sure now. That might still be the case, but phones can be unlocked over the air, so that tells me it is possible to lock it over the air too. So while it's probably still set at the factory, it might be set upon activation.

No, I don't think any major carrier offers contract plans any more. Contracts were widely hated by customers, so when T-Mobile tossed contracts aside they got a lot of positive press and brand recognition. The other carriers felt they had to follow or they'd lose a lot of customers to T-Mobile.

A secondary problem with selling unlocked phones is that in the opening weeks when iPhones are rare, a carrier's store might be selling what precious little inventory they have to someone who's a customer elsewhere, thus blocking their own customers from upgrading.

 

[serialtoon]

Just in time for Apple to stop using Qualcomm modems too. Great timing i suppose for us iPhone users

 

[Dan Holmstock]

Don’t worry. Corporate-friendly (and former Verizon Employee) FCC Chair Ajit Pai probably will get his hands on that bit soon enough. But it will all be with the consumer’s interests in mind. Riiiiiiiiiight...

I hear this has to possibly do wit T-Mobile “getoutofthered” promotion... perhaps to stop the bleeding.

 

[AppleScruff1]

Glad to hear this. It is about time to limit Verizon phone to only their legit customers like I am. Too many fraudulent activities from other carriers’ customers to get their hand on their phone. Verizon is the best on everything in the US including their phone. The high price is totally worth it. Fortunate for those including myself to be able to afford the cost.

The hatred toward Verizon is mainly due to jealousy of not being able to afford the service costs. Jealousy usually triggers the hatred. Just ignore the hatred comments. Fortunate for us for being able to afford Verizon and free from jealousy any hatred or trolling.

Wow. Where is the thumbs-down button? I'm guessing you are the type of person that snubs another for which model phone they have. But what would I know, I'm just a poor, jealous, hate-filled non-verizon user

For what it's worth, I live in rural Minnesota and drive to some of the most sparsely populated places in the country and T-Mobile has never let me down.

I love posts like this that attribute dissatisfaction with something as being a result of jealousy of said thing. The logical hoops one must jump through to reach such a conclusion...

I think you mean overpaying for service cost. I can afford any carrier, any plan. I also have the freedom to jump in a vat of boiling oil. I don't because that would hurt. I would advise others not to do it because it would hurt, not because I'd be jealous of them attempting that pursuit.. It's a freaking cell service not a luxury photo safari though Africa. Since when did one's carrier choice become a status symbol? I just want reliable service at a realistic price. VZW doesn't really offer the latter. But, honestly, all carriers just suck to high Hell. They are the used car dealerships of the 21st century.

No it's not jealousy. It's not like a super exclusive service only elites can afford. I had Verizon for over 10 years and grew tired of their ******** "customer service". Switched to T-Mobile and have never been happier.

This looks like a PR statement from Verizon spokesperson.

Wow. It looks like it went over everyone’s head. Change Verizon in his posts to Apple. Sound familiar? I’m guessing he’s having a good laugh.