Talking tech since 2003

In a press release on Thursday, AT&T Inc. said it will start selling iPhones without requiring a two-year contract, but they will cost $400 more. Spokesman Michael Coe said AT&T will sell the phones starting next Thursday for $599 (8GB) or $699 (16GB), depending on the storage capacity. The two models cost $199 (8GB) or $299 (16GB) under contract.

Let’s take a look at this for a second, shall we? Before you go out and purchase one of these contract free iPhones think about a couple of things.

The contract free iPhone will still be “locked” to AT&T and won’t work with any other cellular carrier unless they are modified (unlocked). Additionally, AT&T will only activate them on the regular iPhone plans, which include a $30 monthly charge for data access and don’t forget your minutes and text messages which will be added on after. If you think you will be able to get prepaid service – think again. Prepaid service will not be available.

Also, AT&T and Apple’s exclusive contract was renewed not too long ago (if I recall correctly) so that will be in effect for a couple more years at least. That means if AT&T’s service is poor in your area and you think if you buy a contract free iPhone you will be able to move it to another provider in a couple months… well, I don’t think so. Seriously, you are better off buying a completely unlocked iPhone from eBay for $599 or $699 (which is typically what they sell for anyway) – but you didn’t hear that from me.

If you plan to keep the phone for a while (remember it’s an iPhone, not some piece of crap Motorola) you might as well just pay less and stick with it for two years. I mean, it makes more sense to me. Why pay more than you have to just to have no contract when realistically you will most likely have the phone for two years or more.

To me, this seems like a “get money quick” scheme and I’m not falling for it, nor should you.

What do you think? Leave a comment!

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