I think iPhone uses WiFi for handoff functionality the same way it uses WiFi for airdrop. Faster.

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That’s correct. I can’t use most of my smart home devices from my phone over a VPN either.

Weird. I just airdropped a video 15 min ago and I was on vpn the whole time.

AirDrop uses WiFi but it’s ad hoc between the devices. Handoff is a continual connection, and goes over your LAN

Ah makes sense then