Apple Insider is reporting that some US-based Apple Stores are, following a similar to move by AT&T, starting to sell unsubsidized and off-contract iPhones. Pricing is $599 for the 8GB model and $699 for the 16GB, but in this case there seems to be no restriction on the quantities purchased.

While Apple Insider suggests these units could be unlocked, we’re not aware of any official policy or method in place to do so — unless they’re referring to Jailbreaking and running the yellowsn0w software.

Speculation as to why Apple and AT&T are now more fully embracing the off-contract model, of course, centers around their desire to clear inventory prior to an anticipated (by the Internet) hardware revision sometime this summer, perhaps introduced at WWDC in June as the iPhone 3G was last year.

Anyone rushing out to get their off-contract iPhone 3G while supplies last?

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US Apple Stores Now Selling Unsubsidized, Contract-Free iPhones?

Hot on the heels of O2 in the UK offering FREE iPhones, and T-Mobile in Germany offering ONE Euro-buck iPhones, AT&T waddles up to the plate to remind these upstart old-worlders how a carrier is supposed to behave:

The company is treating the iPhone 3G pretty much just like any other phone in that people who are ineligible for upgrades have to pay the full, unsubsidized price for the phone. [...] AT&T hasn’t specified what the unsubsidized price is.

Based on European conversions, however, let’s expect that to push $700+

How do you know if you’re eligible? AT&T continues to rock it old-school with nigh-impenetrable explanations.

UPDATE:

Anthony sent us in a note about his conversation with an AT&T rep who confirmed/added the following: Eligible upgrades get you the sweetheart deal within your existing contract, if not you may get the price, but with contract extension.

Hey AT&T, murky much? How about just posting a nice, clear, concise breakdown of the process per subscriber situation? Not Telco enough?

Check out the read link for the deets.

Read

This is a story by the iPhone Blog. This feed is sponsored by The iPhone Blog Store.

UPDATED: iPhone 3G in the USA: Full Price for You!