Most people only see $199 or $299 for the 8GB and 16GB 3G iPhone, respectively. What they don’t see is the 2 year contract requirement that costs additional $30/month for the data service plan on top of the voice plan from AT&T. That’s where AT&T makes their money to subsidize the phone for that “low” cost. (Even though people who has done the virtual teardown on the 3G iPhone says that it costs Apple $173 to make 8GB 3G iPhone, and $196 for the 16GB iPhone. But this is not the price AT&T pays to Apple to purchase so they have to eat the cost to sell to consumers at $199 and $299)

Well, it seems if you don’t want the 2 year contract, you have the option of buying them for $400 extra. AT&T hasn’t said when people will be able to do this but you can buy 8GB version for $599 and 16GB version for $699, without the 2 year contract as long as you have some kind of service from AT&T. I’m not sure who would do these but at least the option is there.

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