Apple iPad and iPad Mini
Apple's new iPads come with software-based Sims, which allow users to easily change phone networks.Apple

The Apple Sim, which was launched with the iPad Air 2 last week, was designed with one simple objective in mind: one Sim, many carriers.

This means that whenever you want to switch carriers, you can simply enter the settings menu and pick the new one. However, AT&T breaks the Apple Sim's best feature and locks it down to AT&T if you pick that carrier, according to a new report by TechCrunch.

Pick AT&T, however, and you get the following prompt, says the report.

"Once activation is complete," it reads, "this Apple Sim can only be used with AT&T. You will need a new Apple Sim if you change carriers in the future."

According to MacRumors, an Apple support page notes the following tidbit.

Using Apple Sim, you can choose from different cellular carriers and their various programs. The data plans vary by carrier. For instance, in the US, you can choose a domestic plan from either Sprint or T-Mobile and also pick an alternate plan from the other carrier as needed. When you choose AT&T on iPad Air 2 and iPad mini 3, AT&T dedicates Apple Sim to their network only.

Currently, AT&T has not offered any information on why it is locking down Apple Sims, but has confirmed that the news is true and authentic.

It is also worth noting is that this only applies to users who buy a new iPad with an Apple Sim installed out of the box – which isn't the case with all the new iPads. It really comes down to where you purchase the device from. Buy it from Apple or an independent reseller, and you will have an Apple Sim. Buy it from a carrier, and you may have Sim restricted only to that specific carrier.

AT&T's move here not only defeats the whole purpose and idea behind Apple Sim, but also has the potential to scare customers away from using their services on a new iPad Air 2.