AT&T to sell iPhone without contract for $599

AT&T Inc. said Thursday it will start selling iPhones without requiring a two-year contract, but they will cost $400 more. Spokesman Michael Coe said AT&T will sell the phones starting next Thursday for $599 or $699, depending on the storage capacity. The two models cost $199 or $299 under contract.

The phone company had said in July, when the latest version of the iPhone was launched, that it would sell contract-free phones in the United States. Such phones are sold in some other countries.

The new phones will still be "locked" to AT&T and won't work with any other cellular carrier unless they're modified. AT&T will only activate them on the regular iPhone plans, which include a $30 monthly charge for data access. Prepaid service will not be available.

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It seems a reasonable price for any current gen, popular mobile phone. HTC Touch Pro, etc all cost the same kind of money unlocked / not on a contract - they certainly do over here. Looking on Expansys, the Touch Pro is £534, the Diamond2 is £424...

I did the figures for this, it sounds about right. You have to take into consideration the costs for 1 year, and then factor it out until you come to about $500 or $600.

Let's look at the figures.
$99 for Unlimited Calling + $30 for Data + $20 for texting = $149 x 12 = $1788/yr
Divide $1788 by 2 and you get $894

Now, if you take into consideration that AT&T does 2 year contracts, add $1788 twice and you get $3576.

Retarded Pricing. I got a 16GB black iphone 3g for 400.00CAD. No to mention that its factory unlocked :)

I don't see how they can legally do this though (the requiring them to get the data plan) if you aren't under contract.

So they're going to sell them without a contract, but still lock them to AT&T and require a montly payment... so the extra $400 is just so the consumer can cancel their service at any time. Seems kinda pointless to me.