AT&T wants $400 more for contract-free iPhone

by Stevie Smith - Mar 20 2009, 16:00

Having already established itself as a feature rich touch-screen handset with 3G performance, a wealth of downloadable applications, and an unerring sense of trend, the Apple iPhone is now attempting to navigate one its last consumer speed bumps – that annoying mandatory two-year service contract with AT&T.

Speaking in an AP report, AT&T spokesman Michael Coe has this week confirmed that the U.S. communications giant will officially start selling the iPhone without an accompanying contractual lockdown from March 26.

Before prospective iPhone owners begin bouncing off the walls with delight while reaching for their bulging piggybanks, they should perhaps bear in mind that AT&T’s tantalising announcement is tempered somewhat by news that it will be adding hundreds of dollars to the handset’s retail price.

“The no-commitment pricing offer is available to AT&T customers for $599 [8GB) and $699 [16GB],” outlined Cole, which equates to a handset price hike of $400 USD on both the standard 8GB model and the larger 16GB option.

And if the increased price alone doesn’t cause furrowed brows throughout a great many potential consumers, then AT&T seems intent on preserving as many piggybanks as possible by keeping the contract-free iPhone firmly attached to its own network, which means it won’t be open to other carriers and customers will need to pony-up yet more cash for AT&T.

While The Tech Herald would never attempt to dissuade determined readers from investing in Apple’s undeniably sexy iPhone, it’s worth noting that the non-telephonic 8GB iPod Touch costs a mere $229 USD and rooting out a VoIP application will provide communication alongside Wi-Fi connectivity (the 32GB model only costs $399 USD).

Of course, saving extra cash while retaining iPhone functionality by hacking a contract-equipped $199 USD smartphone and unlocking it from AT&T’s grasp is something we’d never condone.

Cough.

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