A lot of iPhones and other phones are stolen and resold in the black market. The new users of a stolen device might not even know their handset belongs to someone else, so they start using it. In order to protect people from having their iPhone used by third-party people, carriers and developers started to check iPhone IMEI number and then block it [IMEI is a unique 15-digit identifier of every iPhone manufactured by the Cupertino-based tech giant which can be found in Settings – General - About].
Stealing and iPhone lost are two main reasons for why iPhone gets blacklisted. There are other terms that identify this. They are barring and blocking. If the iPhone is blacklisted by a carrier, it is impossible to use this handset on this carrier’s network.
Also its IMEI can be listed in the black list if user doesn’t pay for his gadget, if there are insurance claims and not-agreed terms of used. There can be other reasons as well.
Mobile operators in some countries even share one database of registered devices, and if a gadget gets blacklisted in such a country, it will be impossible to use it with any local carrier.
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