IPhone will the start selling without requiring a contract of two-year. It will be have cost $400 more. Michael Coe said AT&T will sell the phones starting next Thursday for $599 or $699, depending on the storage capacity. The two models cost $199 or $299 under contract.The new phones will still be "locked" to AT&T and won't work with any other cellular carrier unless they're modified. AT&T will only activate them on the regular iPhone plans, which include a $30 monthly charge for data access. Prepaid service will not be available.
Apple Inc., the maker of the iPhone, has been selling the device from its stores and Web site, but would not say if it would sell the contract-free version.
Apple is widely expected to release a new version of the phone this summer.
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