AppleInsider is reporting that Apple Retail stores are now selling the iPhone 3G with no contract commitment! Awesome, right? Well, Awesome for those who can afford a $599 8GB model and $699 16GB model. These prices are extremely steep, and probably neither AT&T or Apple will see these selling like IHOP Pancakes.

Surprisingly, Apple’s offer comes with less restrictions than AT&T’s offer. Apple isn’t limiting the sales to one per customer like AT&T is and isn’t requiring that purchasers be current AT&T customers.

While the phones are still technically locked to AT&T service, it is possible (but not supported) to unlock the phones for use with other mobile service providers. In the US, that is largely limited to T-Moble and Metro PCS, although both GSM providers do not support the 3G network the iPhone 3G needs to connect at faster than EDGE speeds.

So, there you go, If you got $600 or $700 to throw down for a commitment free iPhone 3G this is your best bet and then hack it with some awesome iPhone 3G Hacks!

AT&T has confirmed that contract-free iPhone 3Gs will be coming to the market next thursday! That’s awesome knews for those who can’t afford to be tied down to a contract just to get an iPhone!

Each phone will cost $400 more than their subsidized versions at $599 for the 8GB and $699 for the 16GB. The phones will still remain locked to AT&T and will require the standard iPhone data plan.

Stay tuned!