Interesting... I don't there was any mention of it being unlocked... - Daniel Bachhuber

Almost certainly. Apple gets a cut of every monthly bill. The contract is the real money maker for Apple. I doubt they make much on the phone. Especially now with the price drop. - Kevin D. White

yes it does - Jamie

I've heard rumors of T-Mobile to sell unlocked 3G iPhones in Europe. - Hao Chen

So is there a consensus that the $199 model is locked? What happened to the rumor of $199 locked at AT&T in the US and un-locked at $499 at the Apple Store? - Jon West

i'd bet the ranch a 2 year agreement is part of the deal. let's get real. - sean808080

I believe Apple has a 5 year exclusive agreement with AT&T :-( - Jonathon

Yes, it does require a 2 yr. plan with AT&T. From Apple.com: " Requires new 2-year AT&T rate plan, sold separately." - Aanarav Sareen

Ok..sold separately? All I want to know is if I can walk in to an apple store and buy an iphone for 199 and walk out..is that possible? - Anthony

and the data plan is now $30 per month. - Doug Brooks

Looks like Apple is no longer getting a cut from AT&T: http://arstechnica.com/journal... - Glenn Slaven

Anthony, that "sold separately" phrase makes me believe that you can walk out with an iPhone for 199. - Hao Chen

Just to update everyone here in case you didn't know, AT&T is requiring in-store activation: http://www.tuaw.com/2008... - Bwana ☠

Can someone give me a link to the U.S. monthly price breakdown - Daniel from twhirl

What if you buy from an Apple store? Does that still require in-store activation or only if bought at AT&T? - Jon West