Here’s why Apple Upgrade requires AT&T, T-Mobile, or Verizon for iPhone

Apple's new Upgrade program for iPhones comes with an important requirement: users must connect to one of three major carriers - AT&T, T-Mobile, or Verizon. The necessity stems from the deals Apple has struck with these carriers, which are valued at hundreds of millions of dollars. In exchange for these substantial payments, Apple agrees to concessions, one of which is the requirement for the iPhone to be connected to a carrier account from AT&T, T-Mobile, or Verizon.

This requirement is also visible in Apple's marketing materials, as the logos of these carriers are prominently displayed. The move is seen as a strategy to incentivize smaller carriers to behave in ways that align with Apple's preferences. Additionally, this requirement addresses concerns about fraudulent iPhone sales, which increased significantly when Apple began offering carrier financing at its retail stores.

The activation requirement has since been improved, with carriers implementing advanced systems to detect and deter fraudulent behavior. Despite this, Apple notes that while connecting to a carrier is mandatory for the Apple Upgrade program, the phone remains unlocked, allowing users to switch carriers at any time, provided the terms of the carrier are met.