8gb model - $599
16gb model - $699

That pretty expensive. I personally would rather sign the contract and save a little now even though it would cost more in the long run. I wonder if they will do this in Canada too. It seems likely if there are doing it in the States and in many other countries as well.

Here’s a look at AT&T iPhone plan too. Their prices for the iPhone 3G have risen quite a bit this time around.

For the first gen iPhone - $59.99 got you 450 mins, 5000 evening and weekend mins, unlimited data, and 200 texts.

For the iPhone 3G - $69.99 will get you 450 mins, 5000 evening and weekend mins, and unlimited data. 200 texts are $5 extra.

AT&T has also confirmed that non-eligible upgrades to the iPhone 3G will cost $399 for the 8gb and $499 for the 16gb.

I think there is some confusion going around on whether or not these iPhones at no contract prices will be unlocked or not. There has been no mention of them being unlocked. What has been mentioned is that it would be cheaper in the States to buy the iPhone at the contract price, cancel the contract, and then unlock the phone instead of buying it at the no contract price and then unlocking it. The early cancellation fee is only $175 in the States.

You can read the AT&T memo on iPhone pricing here.

Would anyone buy the iPhone 3G at $599 or $699 here?

Source: written by Canadian iPhone User blog http://www.iphoneuser.ca/