AT&T to Offer iPhone Without Contract

Updated from 10:20 a.m. EDT

AT&T (T Quote) announced additional pricing details for Apple's (AAPL Quote) next-generation iPhone, which the company will begin selling next week, including the disclosure that buyers will have an option to purchase the device without a contract.

AT&T reaffirmed that it will offer the 3G iPhone at a subsidized price to subscribers who are activating a new line with the wireless provider or to current customers who are eligible, at the time of purchase, for an upgrade discount. Those subscribers can buy the iPhone 3G for $199 for the 8-gigabyte model or $299 for the 16-gigabyte version. Those prices require two-year contracts, AT&T said.

Existing AT&T subscribers who don't qualify for an upgrade discount can purchase the iPhone 3G for $399 for the 8-gigabyte model or $499 for the 16-gigabyte device. Both options will require a new two-year service agreement. Current AT&T customers who are upgrading to iPhone 3G will pay an $18 upgrade fee and new AT&T customers will pay the standard $36 activation fee, the company said. ...