Apple retail stores have started selling iPhone 3G's without a contract at unsubsidized price. Apple's move is in line with the rumor that AT&T plans to sell one phone per customer to their existing customers at the full price without the need for a two-year contract.
http://www.iphonehacks.com/2009/03/apple-stores-selling-iphone-3g-without-a-contract-at-unsubsidized-price.html#more
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