I am so confused about the pricing. They announced that the phone will be $499 and $599 with a 2 year contract, but other reports have said that it will cost that much to buy it at the Apple Store without a contract? Is this true. I can't imagine having to pay anything more than $599 for a phone contact or not.. even if it is the jesus phone.
Does anyone have any info?
It will cost $499 and $599. A 2 year contract with AT&T will be required. Both of these were stated at the MacWorld keynote, and both of these have been repeated by Apple and AT&T sources since. However, those are the only two bits of 'confirmed' knowledge regarding pricing and contracts.
There has been no public statement detailing anything other than that. Some people are speculating that those prices are *WITH* the 2 year contract (aka those are the "subsidized" prices,) some are speculating that those are the STARTING prices, and some price subsidy will be available. Anyone that claims to know 100% one way or the other is either lying or mistaken.
This linked sheet confirms it. Even AT&T employees don't know if there will be a subsidy or not, and are specifically directed *NOT* to speculate about any subsidy.
I personally am guessing that those will be the 'final' prices for a couple months, until supply is able to keep up with demand. Once they can supply enough, they will start offering standard cell phone subsidies. I also guess that the iPhone will not be available without a contract, at any price, until AT&T's exclusive expires in a couple years. Both of these are purely uneducated speculations, based solely on my own non-insider knowledge of Apple, and of the cell phone industry.
However, any AT&T contract can be cancelled before it expires, with an approximately $200 'early temination fee'. (Although it also wouldn't surprise me if they bumped that fee up by $100 or so just before the iPhone's release.) But most cell phones sold in the U.S. are 'carrier locked', meaning they only work with the carrier whose service it was sold with. U.S. law prevents carriers from taking legal action to prevent someone from unlocking it; but they don't have to do it for you, nor do they have to provide information on how to do it. With the iPhone seeming to be locked down tight by Apple, it will probably take a while before anyone figures out how to unlock it to work on other providers. (Mainly T-Mobile in the U.S.) (Again, this is all pure uninformed speculation on my part.)