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Want a Cheaper iPhone 3G Without a Contract?

If you were as shocked as I was about the no-commitment price for an iPhone 3G ($599 and $699) then you are probably wondering how to get one without paying that much.Sometimes the simplest solutions are overlooked. Gizmodo points out that instead of paying for that overly-priced iPhone 3G, you might as well get service and the cancel it, coming out cheaper than purchasing a no-commitment iPhone 3G.

They did the math, and they figure that it would still be cheaper to buy a 16GB this way than a contract-free 8GB.

Here’s what you’ll pay to cancel the service: (Plus $199 or $299 for the iPhone 3G)
$36 - Activation
$175 - Early Termination Fee
$70 - One month of service

If their calculations are correct, this would mean:
8GB iPhone Canceled: $480
16GB iPhone Canceled: $580

That is quite a bit of savings from $599 and $699. My only concern is, will it actually work?

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