I was in Boston recently and the Apple store was selling iPhones without contract off the shelf, $499 for 3 8GB, $599 for 16GB 3GS, and $699 for 3GS 32GB plus taxes. This is I believe now standard in all apple stores across US so getting an iPhone is not a problem. The only issue is when I was there there in April was no unlock yet for 3GS 3.1.3 but I think an unlock is available now.