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I im honest I don't see the big deal with this practice.

a) You can unlock the device

b) You can connect via WiFi, why is the device 'phoning home' such a big deal when its brand new and has no data on it?

But what if I live somewhere remote without internet access? Such a simple thing as using the phone shouldn't be impossible.

How does a phone work in a place without any reception/internet?

local wifi? local lte? The degree to which HN fails to consider most environments other than SF is appalling.