MacRumors.com

AppleInsider is reporting that Apple retail stores are now offering the iPhone 3G with no contract commitment required. The 8 GB model is priced at $599 and the 16 GB model is priced at $699. The move comes just as AT&T deploys a similar offer, which was leaked last week and quickly confirmed by AT&T.

Apple's offer comes with fewer restrictions than AT&T's, as Apple retail stores are apparently not limiting sales to one per customer and are not requiring that purchasers be current AT&T customers.

While the phones are still technically locked to AT&T service, it is possible (but not supported) to unlock the phones for use with other mobile service providers. In the US, that is largely limited to T-Moble and Metro PCS, although both GSM providers do not support the 3G network the iPhone 3G needs to connect at faster than EDGE speeds.