I am interested in getting two iPhones for some time, one for me and one for my better half. I had elected to wait for the next generation models to come out in July. Yet, as an AT&T subscriber, I am reluctant to sign another contract just to get these phones. So I was very interested to hear that there was a contract free option for the iPhone.
This past Friday, AT&T announced a rather bizzare pricing scheme for the contract free iPhones.
AT&T said it will sell an 8 gigabyte iPhone for US$199 and the 16 GB version for $299. Both require the usual two-year service agreement. These models go on sale July 11 in the U.S.
Also announced was a non-contract pricing scheme. AT&T said it will sell an 8 gigabyte iPhone for US$599 and the 16 GB version for $699. Both are offered contract-free, meaning it sells without the usual two-year service agreement. The contract-free phones will work only on AT&T’s network, spokesperson Michael Coe told The Associated Press.
That’s a $400 option for no contract. It could be worth the cost if you really dislike AT&T’s service and wanted to use the phone on another carrier. But you can’t.
AT&T’s early-termination fee is a maximum of $175 and, as of May 25, that fee is reduced by $5 for each month you own the phone. That’s a lot less than $400.
I hate contacts, but jeez, why would I spend $400 when I could do it at $175?
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