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AT&T to Sell Apple iPhone 3G without Contract for $599

AT&T today said it will start selling iPhones next Thursday without requiring a two-year contract, but they will cost $599 or $699, depending on the storage capacity.

The two models cost $199 or $299 under contract.

The new phones will still be “locked” to AT&T and won’t work with any other carrier unless they are 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.

Apple is widely expected to release a new version of the phone this summer

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