A special thanks to commenter "tamade" for pointing out the obvious. Since AT&T's unlocked iPhone 3Gs will cost you $599 (8GB) or $699 (16GB), you are better off signing a contract and canceling it than buying an unlocked iPhone. In fact, it's even cheaper to buy a 16GB iPhone using this method than to buy and unlock an 8GB version. But math isn't our strong suit so go ahead and double-check our calculations. We won't be offended:

$299 - 16GB iPhone w/contract
$36 - Activation
$175 - Early Termination Fee
$70 - One month of service

Total Price Using The Shady Method: $580

So...

8GB iPhone Canceled: $480
16GB iPhone Canceled: $580
8GB iPhone Unlocked from AT&T: $599
16GB iPhone Unlocked from AT&T: $699

Are we missing something?

[Photo: Robert Baxt]

Send an email to Mark Wilson, the author of this post, at mark@gizmodo.com.