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The Associated Press quoted an AT&T representative Thursday confirming plans to sell no-contract iPhones for $599 or $699 starting next Thursday, as first reported Wednesday by the Boy Genius Report. There's a catch, however; those phones will still be locked to AT&T's network.

A regular AT&T iPhone account will be required to operate the phone, although theoretically you could activate the phone one day, cancel your account the next, and only be out activation fees and a month's worth of service, rather than two years worth of service. But then you'd be reduced to using your expensive iPhone over just Wi-Fi networks unless you're willing to unlock it for other networks.mulan

An Apple representative did not immediately return a call seeking comment on whether a similar offer would be in place at Apple's retail stores, which the AP was also unable to confirm.