Two new models of iPhones go on sale next week for $199 and $299 -- depending on the amount of memory -- with two-year AT&T contracts. AT&T says the no-contract versions will cost $599 and $699 and will be sold sometime "in the future." Those buyers would go month-to-month on AT&T's service and the no-contract phones would be "locked" to work only on AT&T's network.
The new iPhones will have faster data access and more accurate navigation capabilities. The cheaper model will have 8 gigabytes for internal memory, half that of the more expensive model.
