AT&T recently started selling contract free iPhone at their stores country-wide. Now, it seems that Apple has joined them as well! The prices for unsubsidized iPhones are $599 for 8GB model and $699 for 16GB model, the best part being no quantity limits like the AT&T store (and a better staff)!
This also means no in-store activation. Though the phone is still technically locked to AT&T, it can be unlocked (think yellowsn0w ).
This move by Apple and AT&T seems to be a great move to clear the inventories and make space for the expected new iPhone models that might be announced at the upcoming WWDC,