With the news of a new gen of iPhone and iPhone 3.0 coming up, Apple and AT&T are having a ‘clearing sale’ it seems of the old iPhone gen.

Now you can buy an iPhone 3G contractless. Yes you heard me right!

The phone will cost you $599 for the 8GB version or $699 for the 16GB model. Hmm sound alright to me.

UK customers will be able to buy the 8GB iPhone for GBP$550 (USD$787) and the 16GB for GBP$600 (USD$859), but will be allowed to use it with any carrier.

AT&T users themselves have an offer where they can own a iPhone 3G at subsidized price if you’re their mobile subscriber.

While the phones will still be officially locked to exclusive carrier AT&T’s network, the phones can be unlocked to work with any network.

This news of course fuel rumors of a summer release of a new iPhone model. Woohoo!

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