Apple says the iPhone 5 smartphone can now be purchased without a carrier service contract, offering flexibility for users traveling outside the United States. \"If you don\'t want a multiyear service contract, or if you prefer to use a local carrier when traveling abroad, the unlocked (no contract) iPhone is the best choice,\" Apple said in an online post. Apple said an unlocked phone \"does not come with a micro-SIM card for iPhone 4 and iPhone 4S, or a nano-SIM card for iPhone 5, so you\'ll need to get one from any supported GSM carrier worldwide.\" Once a consumer buys a card, activating the phone is a matter of inserting the card into the iPhone, holding the On/Off button for a few seconds and following instructions, the company said. Buying an iPhone 5 without a contract hints at how much carrier services are subsidizing the price of the device when a contract is included. The iPhone 5 starts at $199 with a contract. An unlocked iPhone 5 starts at $649.