Two new models of iPhones go on sale July 11 for 199 dollars and 299 dollars, depending on the amount of memory, with two-year AT&T contracts. The no-contract versions will cost 599 dollars and 699 dollars and will be sold sometime "in the future," AT&T said.

Buyers would then go month-to-month on AT&T's service. AT&T said the no-contract phones would be "locked" to work only on AT&T's network, as the contract-laden phones will be.

The new iPhones will have faster data access and more accurate navigation capabilities. The cheaper model will have 8 gigabytes for internal memory, half that of the more expensive model.

The first version of the iPhone was sold in the United States without a contract, but AT&T would activate it only with a two-year contract. Many phones ended up being "unlocked" from AT&T's network and shipped overseas.

Also Tuesday, AT&T revealed the iPhones will go on sale at 8 a.m. local time on July 11. Last year's iPhone launch, which happened in the evening, had Apple devotees camping outside stores in anticipation. (Xinhua)