Some US Apple retail stores have reportedly begun selling iPhone 3Gs without a contract. Apple Insider reports the 8GB model is available for $599 and the 16GB for $699, the standard retail price without AT&T subsidies.
The iPhones are still locked to AT&T service, but third-party unlocking tools could theoretically allow the phones to work with other GSM carriers including T-Mobile and Metro PCS. However, those networks do not support the higher 3G data speeds offered by AT&T.
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