AT&T to sell 3G iPhone without contract

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AT&T will sell the new version of the iPhone without a service contract for $400 more than the price with a two-year plan, a break from the rules set when Apple’s popular touch-screen gadget made its debut last year.

Two new models of iPhones go on sale July 11 for $199 and $299, depending on the amount of memory, with two-year AT&T contracts. The no-contract versions will cost $599 and $699 and will be sold sometime “in the future,” AT&T said. Buyers would then go month-to-month on AT&T’s service. AT&T said the no-contract phones would be “locked” to work only on AT&T’s network, as the contract-laden phones will be.

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