For the advertised prices of $199 and $299, evidently not. A day after announcing the new 3G version of the iPhone with its new low prices, Apple clarified that the bargain prices advertised were those customers would receive when purchasing subsidized phones which require the signing of a contract with a cellular service provider (AT&T in the US, O2 in the UK, etc).
General
Can I buy the iPhone 3G without a contract?
Can I talk on my iPhone and browse the internet at the same time?
Unfortunately, no. The iPhone uses the EDGE network for data communications. EDGE cannot be used at the same time as a voice call is active as these two types of communications utilize the same channel.
3G capable phones can transmit data and voice simultaneously without interfering with eachother.
What do the proximity and orientation sensors in the iPhone do?
The "high technology" sensors (as Apple calls them) in the iPhone are some of the more exciting features this new device brings to the table. These sensors won't result in the iPhone doing anything other phones aren't capable of, but it will let the iPhone do it without instruction from you.
The proximity sensor:
Will the iPhone operating system take up my storage space?
The operating system will be stored along side your music. On the bright side, Apple claims that the iPhone's version of OS X should only take up less than half a gigabye of space. So in reality, it appears that iPhones will have 3.5 and 7.5GB of free space to work with.
When will the iPhone be released/available?
First it was Christmas, then it was January 9th, then it was January 15th. All of these, as you already know, proved to be wrong. For now, the official word from both Apple and Cingular is that the iPhone will go on sale in June of this year (2007). Neither company has offered an exact release date and our feeling is we won't be hearing of one any time soon.
(Updated June 3, 2007): Apple has announced an official iPhone release date - Read more

