We've received word that Vodafone in Italy plans to sell unsubsidized iPhone 3G models for 499 euros and 599 euros for the 8GB and 16GB models respectively. At current rates, that converts to about $775 and $930 respectively. Vodafone says these models are meant to be used with prepaid plans.
Other carriers, including AT&T in the United States, have yet to reveal pricing for unsubsidized iPhone 3Gs, let alone indicate that they will sell the phones unsubsidized at all. Currently AT&T has only announced that it will sell subsidized phones starting at $199 with two-year contracts.
As previously reported, there will be no iTunes-based activation for the iPhone 3G. Activation will take place at the time of purchase, either at AT&T or Apple retail stores. This apparently means that there will be no online ordering of the new model, which is due to ship on July 11th.
The in-store activation method is the one traditionally used for most wireless phones, though Apple bucked the trend with its first-generation iPhone, offering an in-home activation scheme that allowed users to purchase the devices boxed then activate them later through iTunes.