AT&T to Sell iPhone without Contract

July 1, 2008 8:31:45 AM PDT
You'll soon be able to buy an Apple iPhone without a service contract -- but it'll cost you. AT&T says it will sell the new version of the popular touch-screen gadget without the contract for $400 more than the price with a two-year plan.

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.