Apple on Tuesday started selling an unlocked version of its iPhone 4, starting at $649.
A 16GB unlocked iPhone 4 will set you back $649, while a 32GB version is selling for $749. Both are available in black or white; the black will ship within one to three business days, while the white is available in three to five days, according to the Apple Web site.
The benefit of an unlocked phone is that you are not locked into a two-year contract with a particular provider. But it also means that you don't get the subsidized pricing provided by someone like AT&T or Verizon. The same phones with a contract cost $199 and $299.
To activate the phones, users will need a micro-SIM card from a supported GSM wireless carrier. In the U.S., that would include AT&T and T-Mobile, but as Apple Insider notes, the T-Mobile iPhone would run over the slower 2G EDGE network because T-Mobile's 3G network is not compatible with the iPhone. Sprint and Verizon run on the CDMA network.
Sorry iPad users—the iPad's micro-SIM card cannot be used in the iPhone 4. Once you have an unlocked iPhone and micro-SIM card in hand, insert the micro-SIM card into your iPhone, connect to a Mac or PC, and launch iTunes to complete the setup, Apple said.
"Get all the features of iPhone 4—FaceTime video calling, Retina display, HD video recording, and more—in a phone that you can activate and use on the supported GSM wireless carrier of your choice, such as AT&T in the United States," Apple said in a note. "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."
Apple will not ship the unlocked iPhone internationally, but those who purchase the device in the U.S. can use it in other countries. "The unlocked iPhone will work on supported GSM carrier networks around the world," Apple said. "Because the unlocked iPhone is sold without a contract commitment, you can establish service and use a micro-SIM card from a local carrier at your destination."
The unlocked iPhone will come with the iPhone, Apple earphones with remote and mic, dock connector to USB cable, USB power adapter, documentation, and a SIM eject tool.
Rumors about an unlocked iPhone 4 first emerged yesterday when Chronic Wire, a well-known iPhone modder, tweeted that "Unlocked iPhones headed to Apple Stores for Wednesday: MC603 (16GB, Black) MC604 (16GB, White) MC605 (32GB, Black) MC606 (32GB, White)."
Apple apparently decided to start selling the devices a day early. Has anyone nabbed an unlocked iPhone? Is ditching a contract worth the extra $450? Let us know in the comments.
For more, see PCMag mobile analyst Sascha Segan's take: Why Apple Is Selling Unlocked iPhones in the U.S..