In an attempt to prevent the iPhone from further hacking and unlocking Apple decided to stop accepting cash for these handsets. The only way one can purchase an iPhone today is by signing a 2-year contract with an official carrier, such as AT&T for example. AT&T pays Apple about $18 per month for each iPhone they sell with a contract, so as you can guess this is much more convenient than if a person buys the device for cash and use it on some other network. Plus, now you won't be able to buy more than two handsets... :)
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