As I see it, it's cheaper to get the subsidized iPhone, pay for the first month of service, and cancel after that month than to buy the unlocked iPhone anyway.
there is no unlocked iPhone 3G, just ones that aren't tied to contracts
Still 199+175= $374
Much cheaper than $599
Where does it say you get to keep the iPhone?
I was going to post a thread about it but here's article about that, seems a good ideaif you don't mind the uncertain consequences.
http://www.tuaw.com/2008/07/01/doin-the-wacky-atandt-math2/
Given this hefty price tag, consider what the point of buying an iPhone outright gets you: basically a contract-free unit that you can hack, unlock and activate at will. Once you've paid the price, and the unit is yours, you can use it with insanely cheap pay-as-you-go plans, including inexpensive "unlimited" 3G data plans that may or may not work with the iPhone 3G. You get the new cool form factor and onboard GPS positioning, great for runners and bikers and such.
If it's been a month, you can keep your 3G iPhone. I think that it's blasphemy that you don't get to keep the phone that you purchased with money before 30 days are up, but...
Not being tied to a contract is ipso facto pro tem an unlocked iPhone. It's an iPhone for people who don't want to worry about canceling a contract to get away from AT&T. The only reason you'd buy it is to unlock it.
If it's been a month, you can keep your 3G iPhone. I think that it's blasphemy that you don't get to keep the phone that you purchased with money before 30 days are up, but...
One thing to note is that you will almost certainly be able to do this one time and one time only. So you may be able to buy a 3G, cancel, and sell it or use on T-Mobile, but this will prevent the mass exodus of phones to Russia and other places that occurred with the original iPhone.As I see it, it's cheaper to get the subsidized iPhone, pay for the first month of service, and cancel after that month than to buy the unlocked iPhone anyway.