This is first time Apple is selling factory unlocked iPhones, which will allow users to use a SIM card from any GSM carrier.
Ever since Apple launched GSM iPhone in the U.S., it has been locked to AT&T and theCDMA iPhone, which was launched earlier in the year is also locked to Verizon as they offer them at subsidized prices to customers willing to sign a two-year contract. Apple currently offers factory unlocked/SIM free iPhones in some select countries such as UK, Canada, Hong Kong etc.
Here’s the product description on Apple’s website:
If you don’t want a multiyear service contract or if you prefer to use a local carrier when traveling abroad, the unlocked iPhone 4 is the best choice. It arrives without a micro-SIM card, so you’ll need an active micro-SIM card from any supported GSM carrier worldwide.
Apple is selling the 16GB iPhone 4 model for $649 and the 32GB model for $749, which works out to a premium of $450 for the freedom to use it on any GSM carrier.
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