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October 12, 2008 9:20:45 PM CDT

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Without AT&T Contract, iPhone 3G Runs $600

Posted Jul 2, 08 3:26 PM CDT in Business,  Technology 

(Newser) – AT&T will sell contract-free iPhone 3Gs for $600 (the 8-gig model) and $700 (16 gigs), a $401 mark-up, the New York Times notes. There are no details available on why a consumer would want the phone without the, er, phone, but AT&T says there is a demand—and notes that other wireless models already cost far more without contracts.

A somewhat confused analyst weighed in with a possible explanation: “If nothing else, psychologically, it makes people think they are getting a good deal if they sign up for a contract.” One research firm broke down the price of the forthcoming device’s parts and labor—and valued Apple's object at only $173 (that’s $53 less than its groundbreaking older brother).

Source New York Times

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In this photo provided by Apple Inc., the Apple iPhone 3G is shown.   (AP Photo/Apple Inc.)
AT&T Chairman, CEO and President Randall Stephenson holds up the new iPhone 3G .   (AP Photo/Laura Rauch)
Apple CEO Steve Jobs announces the new Apple 3G iPhone at the Apple Worldwide Developers Conference in San Francisco, Monday, June 9, 2008.   (AP Photo/Paul Sakuma)
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