AT&T offers new iPhone without contract
But skipping the two-year plan will raise price of iPhone 3G by $400
NEW YORK - AT&T Inc. will sell the new version of the iPhone without a service contract for $400 more than the price with a two-year plan, a break from the rules set when Apple Inc.'s popular touch-screen gadget debuted last year.
Two new models of iPhones go on sale July 11 for $199 and $299, depending on the amount of memory, with two-year AT&T contracts. The contract-free versions will cost $599 and $699 and will be sold sometime "in the future," AT&T said.
The phones sold under contract are subsidized by AT&T, which expects to make the money back through monthly service fees over the life of the contract.
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