Apple, AT&T end no-contract iPhone sales in U.S. (Updated)

Apple and AT&T have removed no-contract iPhone purchasing options from their websites, signaling a further tightening of restrictions on U.S. iPhone users compared to those abroad. Previously available at prices significantly higher than those of even early upgraders—$599 for a 16GB iPhone 4 and $699 for a 32GB unit—the options allowed customers to purchase the phones without extending their existing AT&T contracts. Apple has also changed its FAQ found at the bottom of its online store’s iPhone page, noting that the iPhone is not available without a commitment and “requires a two year AT&T wireless service contract.” Curiously, Apple did not begin contract-free sales of the iPhone 3G or iPhone 3GS until the devices had been on the market for roughly nine months; it is unclear what prompted the change in policy with the iPhone 4. [via MacNN]

Updated: An AT&T spokesman has issued a statement indicating that the language on Apple’s site has not been changed, and that customer should still be able to purchase a contract-free iPhone 4 by visiting an AT&T store.

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