AT&T will sell the iPhone 3G without a contract for $599 (8GB) or $699 (16GB). This scheme is a departure from that of the original iPhone, which was sold exclusively with a two-year agreement.
The $199 (8GB) and $299 (16GB) pricing announced during the iPhone 3G's introduction will be available to the following customers:
- iPhone customers who purchased before July 11
- Customers activating a new line with AT&T
- Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount
AT&T customers who are not currently eligible for an upgrade discount -- those who didn't purchase an original iPhone and aren't otherwise eligible -- can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement.
Current AT&T customers who are upgrading to iPhone 3G will pay an $18 upgrade fee and new AT&T customers will pay the standard $36 activation fee.
Customers can check their eligibility to upgrade here.
There is no need for current iPhone owners who are upgrading to return their old devices.