Buying an unlocked phone, whether it’s an iPhone or not, is the best way to go – every time.  Locking yourself into a 12-24 month contract means you end up paying a lot more for the phone over time, and makes it difficult to upgrade when you want to.  It’s relatively standard practice to be able to buy an unlocked, SIM-free mobile phone in Europe, but less common in the USA.

If you wanted an unlocked iPhone 4, it has been impossible until today, as Apple has begun selling a contract free iPhone 4 through the Apple Store.  The GSM 16GB model is priced at $649 and the 32GB at $749 – a steep outlay certainly, but far more cost effective in the long run.

An unlocked phone means you have the choice of any GSM carrier, and are free to change at any time if you don’t sign a long-term contract just for the SIM.  It’s also handy for traveling abroad, as you can pop another SIM in without any problem, as it’s not locked into AT&T.  Everything else about the phone is exactly the same as one you’d get with a contract.

Don’t forget the following if you plan on buying a contract-free iPhone 4:

• You’ll need a micro-SIM from a GSM carrier.
• If you have a regular SIM card, it can be cut down to size to fit inside the iPhone 4.  Just be careful!  We’ve got a ton of information on how to do this here.
• Any iPad 3G SIM you have won’t work with an iPhone.
• Not buying a subsidized iPhone 4 gives you the freedom to choose any GSM carrier, even those who don’t normally offer the iPhone 4.  Here’s a reference list of US carriers for some inspiration!

So, now that you can buy an unlocked iPhone 4 in the USA, the question is – should you?  Well, the new iPhone is almost certainly going to be released before the end of the year, meaning the iPhone 4 won’t be the ‘latest’ model anymore.  However that doesn’t mean it’s out-of-date, as it’s still a very capable device – plus if you’ve waited this long to buy one, you’re perhaps not caught up in the whole ‘must have the latest model’ loop!

What will be interesting is whether Apple decided to sell an unlocked version of their iPhone 5 when it’s released.  If they do, then that will almost certainly be the way to go!