Well... 700$ is pretty much the original Price that Apple will sell the iphone 3G VERY SOON without a contract.....
AT&T has mentioned that they will offer the iPhone 3G without a contract shortly after the actual Launch... i cant find the link on where i read this, but it was coming from AT&T.... and the price for the 8GB & 16GB would be 549 and 699 i think respectively..
as for the contract procedure... namirfathi is doing the right thing in which he can get his hands on the iPhone 3G.... but there is one thing missing... THEY WILL NOT, i repeat they will not give u the iPhone 3G IF YOU DONT PASS A CREDIT CHECK.... i had my brother go and try getting his hands on the iPhone 3G... but no luck... this is what will happen when u approach the sales dude...
in the Apple Store:
they will ask for ur Social Security Number... if u dont have one, they cant run a credit check.. and if they cant run a Credit check they are not allowed to sell u the iPHONE 3G... they will tell u to go to AT&T and they will sort u out over there...
if u have a Social Security Number but yet u failed the Credit Check... ur not Ellagable to get the iPhone 3G for 299$ they will make u PAY around $500 more to activate it without a good credit check....
in the AT&T Store..
the same thing... except they will make u also pAY $500 if aPPLE sTORE sent u down because u had no Social Security Update....
tHEREFORE.... the best thing to do is get one if u have a Social Security number and u pASSED THE CREDIT check... in the USA..... if not, i would seudgest u wait till AT&T gets the Okay to start selling the 700$ iPhone 3G without a contract...
oooo and one more thing.. i heard that the trick namirfathi wants to pull will work, but only after 30 days of purchase not 3 days... unless u tell them the iphone 3G is stolen and u remove the Sim Card from the iPhone 3G