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Yes, the iPhone is sold locked here in Japan.
I just bought a new 16G model last week, up front price was about $200 USD and there are lots of choices for carriers. After I learn a bit more about it, and understand how to use more of its functions I'll probably unlock it for use abroad. It just costs waaaaay too much to use a Japanese carrier from other locations in SE Asia, and sim cards can be bought in any 7-Eleven (outside of Japan) for just a few dollars.
Stitchawl
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