It has been long rumored that Apple was going to start selling a contract free version of the iPhone mobile device at list prices.  It appears as if these rumors have finally come true.  After confirming with several Apple stores it appears as if you can now pick up a contract free iPhone for $499 (3G), $599 or $699 (3GS).

 While these phones do not have a contract associated with them these devices are still carrier locked to AT&T so you do not have much freedom with the various plans you can purchase.  This is considerably different than many parts of Europe where you can get the devices without a specific carrier service attached to the device.  It would make much more sense for Apple to sell the iPhone unlocked without a contract agreement like they do over in Europe.

 The only benefit of purchasing the iPhone this way, without a contract agreement, is if you were planning on switching mobile devices before the 2 year contract was up.  Otherwise it would make much more sense for most mobile device consumers to sign up for the contract and get the iPhone at a much cheaper price.  With the contract you can usually get the 3G version for $199 and the 3GS for $299.  This is a significant savings when purchasing a new cell phone.  Esepcially when you are going to have to use AT&T as your service provider anyways.  Purchasing the phone with a contract might actually be cheaper in the long run even if you were to break the contract early if you wanted to purchase a new cell phone.  It might be worthwhile to look at the fine print associated with terminating your cell phone contract early with AT&T.  The price of terminating your contract might be less than the extra money you will have to spend on the iPhone without a contract to have that freedom of switching providers whenever you would like.

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