iPhone Advice: You Can Buy The iPhone 3G Without A Contract (But Don’t).

Another day, another iPhone story. Today, though, we’re looking to save you a little money. By now you know that AT&T will sell the iPhone 3G without a two-year contract… for $600 or $700. Don’t be a fool and spend that much money for the new iPhone if you want it without a contract. Here’s how to do it the smart way.

Buy the $199 iPhone 3G and get the two-year contract. You’re required to pay at least one month of service, and the cheapest plan is $69.99 (plus tax, though that varies from place to place). After the first month is up, cancel the contract and pay the $175 early termination fee. Your grand total this way is $444, some $150 cheaper than buying the phone without a contract.
Note that AT&T says you still have to use its service if you buy the $600 contract-free iPhone, so you’re basically paying for flexibility. But now you know better.
And if the last iPhone is any indication, there will be an easy-to-use unlocking application available within a few hours of its release. (People have already been playing the with new firmware, so cracking the phone this time around should be easier.) That way, you can buy the iPhone with contract, cancel it, then switch over to, say, T-Mobile if that’s your thing.
The more you know!
iPhone users can escape AT&T’s contract [San Francisco Chronicle]
Image from The Buzz on Money