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Apple Insider posted a story that Apple revealed its next-generation handset will be sold unlocked and contract-free in November starting at $649.



The unlocked iPhone 4GS will only work on supported GSM networks, like AT&T in the U.S. But it will not work with any CDMA carriers, including Verizon Wireless or Sprint.

Customers who buy an unlocked iPhone 4S will be able to use the handset internationally on GSM networks. They must obtain a micro-SIM card from a local GSM carrier to put in the handset.
  Unlocked iPhone 4S coming in November, won't work with CDMA carriers