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iPhone to be Sold Without 2-Year AT&T Contract

U.S. consumers who want the new iPhone but cannot or do not want to sign up for a two-year contract with AT&T will eventually be able to buy it for an extra $400.

Apple has said the new iPhone will go on sale July 11 at $199 for the model with 8 gigabytes of storage and $299 for the 16-gigabyte version. These prices apply to customers signing up for a two-year AT&T contract.

Those who don't want to be locked into such a contract, or do not have adequate credit, can buy the iPhone for $599 or $699 as long as they sign up for some kind of AT&T wireless subscription, AT&T said Tuesday.

An AT&T spokesman could not yet say when that option would become available.

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