iPhone 3G Now Available Without a Contract

Those who would like to get an iPhone 3G without having to start a new two-year contract can do so now.

AT&T will allow customers to buy a single device this way, but Apple stores are reportedly allowing people to buy as many units as they want.

The devices being sold this way are still locked to AT&T's network, so they can't be used on another carrier, such as T-Mobile. However, it's possible to circumvent this with unauthorized software.

Still, potential buyers might blink at the prices. AT&T heavily subsidizes iPhone 3G units bought with a contract. No contract means no subsidy, so units bought this way are considerably more expensive.

The iPhone 3G with 8 GB of Storage costs $600 without a contract, and the 16 GB version costs $700. With a contract, these devices sell for $200 and $300, respectively.

More about the iPhone 3G
The iPhone 3G is Apple's second-generation smartphone, and the "3G" in its name refers to its support for 3G cellular-wireless networking.

This model has an HVGA touchscreen, Wi-Fi, Bluetooth, and GPS.

It has the ability to run native third-party applications that have been approved by Apple. In addition, it is able to connect to Microsoft Exchange for corporate email service.

Source: AppleInsider