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I have a badly cut sim that was converted to Nano but it was cut slightly too small and damaged. I subsequently went to the Apple shop and they activated the device for me.

If I perform a "Reset All Settings", Will I need to reactivate the phone with a sim card, or will wifi only be enough?

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Reset all settings will not. Erase all content and settings, though, will need a SIM.

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When reseting your iPhone the device will need to activate against the Apple / Carrier servers for this to happen it needs to have a SIM present, even if it is unlocked

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