What to Do When You Can't Find a Missing iPhone
My iPhone was stolen. I have Find My iPhone but it says “unable to locate.” I talked to AT&T, and they said if the battery is dead, it won’t work. What do I do?
Unfortunately, the AT&T representative whom you spoke with is correct. Find My iPhone doesn’t work if the device is powered off, or if the battery is dead. Find My iPhone (or Find My Mac) works by requesting the location from the device, and pinpointing the location on a map. But all of that requires power. But all is not lost.

Any actions selected here will be performed when the device is reconnected to a network.
Luckily, even if your device cannot be found, you can activate the Send Message, Remote Lock, or Wipe options. Whenever your device is charged and reconnected to a network, the actions will be carried out. You can also check a box that will let you know via email whenever the device is located.
Unfortunately, if you haven’t set a Passcode, a thief could easily disable Find My iPhone, rendering the service unusable to track down your device. In that case, your only option is to contact the police.
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jknowlton
December 12, 2011 at 7:13am
This is why turning on Restrictions is so important. If you turn on restrictions so that no one can turn Location Services off and Accounts off, then its one step to prevent someone from turning those services off, and could possibly buy some time to send the remote wipe signal or locate it.
The other problem is, when you want to have an APP access your location, you have to turn restrictions off, and then turn locations back on.
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