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Unlocked -- was originally locked to a carrier (AT&T, Verizon, whatever) and has since been carrier-unlocked. It'll work on other networks, but it may have carrier-specific firmware, bloatware, or be a model variant built for specific bands. Functionally fine for 99% of use cases. Fully Unlocked -- factory unlocked from Apple directly, never tied to any carrier. Clean firmware, no carrier garbage, works on any network worldwide out of the box.
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