Does Apple store sell iphone 4 with no contract?

Yes. It is considerably more expensive though. Go on Apple's website to purchase there or view prices on the model you want.

Yes, but it's still carrier locked to AT&T

Not in the US because Apple is in bed with AT&T here. In Canada and EU/Aus/NZ/Asia/other places yes. It's priced $550 without a contract in Canada and comes factory unlocked. See here on the Canadian page:
http://store.apple.com/ca/browse/home/shop_iphone/family/iphone?mco=OTY2ODA2OQ
Coming soon to Canada factory unlocked. I really hope Apple offers this option in the US so we can use it on Tmobile (EDGE only atm due to frequencies) and other carriers when we travel overseas.

Hi: Actually the 8gB 3GS is $549 on the Apple Canada site, the iPhone 4 will be considerably more. The general buzz is $749 for the 16gB IP4.

Stedman

menboy wrote:
Does Apple store sell iphone 4 with no contract?
I am living in NYC.

Dude, take a little ride over to the otherside of the niagrafalls and get one unlocked and contract free 😉