After all the controversy about unlocking Apple’s iPhones, AT&T has made it moot by agreeing to sell iPhone 3Gs without a two-year contract. The company confirmed an Associated Press report that it will begin selling unlocked iPhones next Thursday for $599 and $699, depending on memory configuration.
Consumers can still purchase iPhone 3Gs for $199 and $299 with the two-year contract, or purchase a refurbished model for $149 from AT&T or Best Buy.
An unlocked iPhone has been on AT&T’s agenda since at least July. When Apple released the iPhone 3G last summer, the wireless carrier said it would sell a contract-free iPhone in the U.S., but didn’t give a date. The unlocked iPhone can be used on T-Mobile or AT&T networks, but it’s not compatible with Verizon or Sprint networks.
A Stampede Is Unlikely
AT&T’s announcement brings the iPhone into line with standard procedures for every other phone on the market, according to Avi Greengart, a wireless analyst at Current Analysis. AT&T has always been willing to sell the phones it offers unlocked without a contract if consumers ask and are willing to pay for it, he said, but the iPhone has been an exception.
“One of the reasons AT&T hadn’t sold the iPhone unlocked is because there was a kickback to Apple for service revenues,” Greengart said. “The ability to get an unlocked phone is less of a threat to Apple’s goal of getting carrier distribution in multiple markets with the second-generation iPhone. Consumers can buy iPhones from local carriers in Europe and parts of Asia.”
Despite the availability of an unlocked iPhone, analysts don’t expect a rush on AT&T. That’s because, for most people, there’s no need for an unlocked iPhone. For consumers who intend to use the iPhone in the U.S., it makes better financial sense to allow AT&T to…
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