Apple Selling Non-Contract iPhones At $599 (8GB), $699 (16GB)

Posted Mar 28, 2009

Apple Inc. (NASDAQ:AAPL) retail stores have begun to start selling unsubsidized Apple iPhone units for $599 and $699, 8GB and 16GB respectively.  Now there is no limit to how many phones a buyer can purchase and there is no need to have an AT&T contract.

The problem with selling iPhones at these prices is that jailbreaking phones may be encouraged.  Less people will go to eBay to buy iPhones now too.

Activation of the phones can take place through iTunes directly.  The phones are still technically locked in with AT&T.

I think that buying iPhones from the Apple store isn’t the best idea because there are many good subsidized iPhone deals out there with a 2 year contract.  I bought my 8GB iPhone for $150 with a two year contract with AT&T.  If I decide I want to break my contract today, it would run me about $175  That means my 8GB iPhone just costed me $325.  This is $249 less than the unsubsidized price.

And AT&T even prorates the early termination fee.

I might be wrong about the $200 contract break fee, but that is what Sprint charges so I figured it would be the same price for AT&T.  If anyone else has any input, leave it in the comments.  I don’t quite see Apple’s logic for setting those prices.

[via AppleInsider]