Purchasing and using a new iPhone during contract

[ajo]

As O2 are no longer doing 12 month contracts for iPhones (even for upgrading loyal customers...but lets not get into that)... how would this work out.

Start a new contract with the current iPhone 5, 12 months in if/when the next iPhone is released if I want it, purchase direct from Apple, put the current sim in and sell/give away the iPhone 5.

How would this work out from O2's point of view.  Would the sim work, or are they tied to iPhones. Are you breaking any contracts doing this?  Are you able to carry on the remainder of the contract this way?

The only thing I guess would be a problem is as the iPhone would be direct from Apple once the sim is in it will be locked to O2 and O2 won’t unlock it as it wasn’t purchased from them or is the original contract phone.  Is this correct?

Thanks

ajo

[MI5]

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@Anonymous wrote:
People were buying the iPhone 5 from Carphone Warehouse as they advertised it as sim free ,and then had a disclaimer in the small print saying it locks to the first nano sim inserted. 

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Someone needs to have the front to challenge that in court !!