The rumor has become reality. You can now pickup an iPhone without signing a contract. Be prepared to pay a ridiculous price though. The 8GB iPhone sells for $599 without a contract, and the 16GB iPhone sells for $699.
The contract-free iPhones are available now from AT&T and Apple stores. To get the deal at AT&T, you must be an existing AT&T customer and you can only purchase 1 iPhone at the contract-free price. Apple will sell them to whoever walks in. Sounds like the Apple store is the better deal.
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