AT&T offers new iPhone option
NEW YORK (AP) — AT&T Inc. will sell the new version of the iPhone without a service contract for $400 more than the price with a two-year plan, a break from the rules set when Apple Inc.’s popular touchscreen gadget debuted last year.
Two new models of iPhones go on sale Friday for $199 and $299, depending on the amount of memory, with two-year AT&T contracts. The contract- free versions will cost $599 and $699 and will be sold sometime “in the future,” AT&T said.
The phones sold under contract are subsidized by AT&T, which expects to make the money back through monthly service fees over the life of the contract.
Without a contract, users can cancel service without incurring an early termination fee. But both contract and contract- free phones will be “locked” to work only on AT&T’s network, and the monthly service plans available will be the same, said AT&T spokesman Michael Coe. The plans add a $30 monthly charge for data like e-mail and Web surfing on top of a calling plan.
As previously announced, the cheapest monthly calling plan for the iPhone will cost $70 per month, before taxes and fees that can add $10 per month. That plan includes 450 minutes of calls and unlimited e-mail and Web browsing.
The new iPhones will have faster data access and more accurate navigation capabilities. The cheaper model will have 8 gigabytes for internal memory, half that of the more expensive model.
The first version of the iPhone was sold in the U. S. without a contract, but AT&T would activate it only with a two-year contract. Many phones ended up being “unlocked” from AT&T’s network and shipped overseas.
AT&T said the iPhones will go on sale at 8 a. m. Friday. Last year’s iPhone launch, which happened in the evening, had Apple devotees camping outside stores in anticipation.
