Apple Follows Suit With AT&T On No-Contract iPhones

Apple Insider

The move follows last week's announcement that AT&T would offer iPhone 3Gs without a two-year contract for $599 and $699. Those phones became available starting Thursday.

According to reports, iPhone customers can now buy iPhones without a contract through Apple retail locations as well, and Apple is offering the no-contract phones for the same rates as AT&T -- $599 for the 8 GB version and $699 16 GB. Although iPhone consumers are still locked into the AT&T network, the difference in offerings is that AT&T's policy is only for existing customers and allows only one contract-free iPhone, whereas Apple's retail offering isn't restricted, according to Apple Insider.

Contract-free mobile devices are not as common in the U.S. as they are abroad, and locking into a contract drives the price down significantly, with AT&T and Apple still offering the iPhones on contract at $199 and $299 a piece.

But a recent study by the New Millenium Research Council suggested that thanks to tough economic times, about 39 percent of American cell phone users the Council polled would consider breaking a cell phone contract to save money.

The iPhone has been in the news quite a bit this week, as Apple is the target of various lawsuits over alleged patent infringements, both direct and indirect, related to its iPhone, iPod Touch and App Store.

Elsewhere on the Apple and iPhone fronts, in addition to popular VoIP service Skype apparently getting ready for its iPhone closeup , Apple also confirmed the dates (June 8-12) of its annual Worldwide Developers Conference, kicking the usual rumor mill about iPhone upgrades into high gear.