AT&T is Providing a $500 Rebate on iPhone 3G

AT&T is Providing a $500 Rebate on iPhone 3G

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We already know that you’ll be able to pick up an 8GB Apple iPhone 3G from AT&T for $199 if you sign a two-year contract, but what if you’re not so inclined to put your signature on a lengthy service agreement? Is there an option to get your hands on an unsubsidized 3G iPhone?

While there do not appear to be any options for Canadians or Americans, it seems that Italians will have the opportunity to buy an iPhone 3G out of contract. To be sold through Vodafone Italy, the unsubsidized iPhone 3G has been priced at 499 Euro and 569 Euro for the 8GB and 16GB versions, respectively. That works out to $771 and $880.

That’s a lot more money than the $199 contract price, but some people are willing to pay that kind of premium to avoid a contract. Prepaid customers can still do the iPhone 3G thing if they choose, but it’ll cost them about $500 more. This works out to about $20 a month if you were to go with a two-year agreement instead.

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