The iPhone is due to cost between 500 – 600 dollars for the handset with a contract. However, it might be that the contract could be for free service for 18 months. Cingular/ATT are thinking this one over at the moment. The normal path of selling a phone on contract is to give it away for free with the contract, or charge a low amount for the phone. Apple do not want to go down this route but Cingular/ATT might find an alternative way. This is all just speculation right now but we can hope 
Via: SlashGear
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