Apple is letting new, or existing, AT&T customers purchase an iPhone 3G entirely online starting at $199, with free shipping straight to your doorstep. Existing AT&T customers must be eligible for upgrade to get the discounted price.

Previously, Apple would allow you to complete half the transaction online (reserving) and then go to an Apple Store to pick up your new, shiny iPhone 3G. Now Apple is ready to remove one more barrier to purchase the iPhone online from the Apple Online Store. The new policy could be an attempt by Apple to clear its remaining iPhone 3G before the expected announcement at WWDC of a new iPhone. Phil Schiller has said that the iPhone has an annual refresh rate. 

Of course, AT&T also sells iPhones online, but if you'd rather deal with Apple and not AT&T, and you're not concerned about buying a device that may be replaced in a month, go for it.

Via Engadget