I got a Sim Free 64GB Iphone 5 from Carphonewarehouse in UK n gifted the same to my Bro in law in India. He inserted the nano sim and can see the carrier and 3G symbol but the phone asks for activation. Its a SIM FREE phone, why cant he use it?

Carphonewarehouse probably lied to you or you misunderstood what they told you. Unless something's changed that I've not heard of, the only place you can buy unlocked iPhones in the UK is directly from an Apple Store, retail or online. Your only recourse most likely will be to return the iPhone to Carphonewarehouse and then buy an iPhone from Apple directly.

Regards.

Best thing to do is contact CarPhoneWarehouse

Correct they do

but is is sim free NOT UNLOCKED as many have fournd out

The iPhone will lock to the first sim/carrier activated

Carphone warehouse do not sell unlocked iPhones

only the Apple Retail stores or Apple on line in UK

It should lock to the first SIM in the UK that it encounters. After that it cannot be used with other cell carriers.

It will lock to the first sim,or carrier that the iPhone is connected through

Once locked it is a locked iPhone and can only be unlocked by that carrier

If you activate with a UK carrier it will only work ever with that carrier

Incidently CPW will admit this if pressed in store ,just don't advertise the fact

Their marketplace is the UK after all not the rest of the world 😉

Not, no one at Apple can do that. You need to return the iPhone to Carwarehouse and get your money back.

Moral: Only buy unlocked iPhones from the Apple Store.

I know thats no consolation...but...anyways..

What should I do if I bought an unlocked phone from Apple Store in Munich, Germany, for the full price (789 Euro), but it's locked?

Call that store and ask them about it

They are locked to the first SIM, but an Apple Advisor told me to out new Nano SIM in, restore phone in iTunes with PC or MAC, and upon restore it will be unlocked, you only do this once and it's unlocked.