Play.com offering sim free, unlocked iPhone

Late last year O2 began offering the pay as you go iPhone, and more than a few users balked at the whopping £350 handset costs.
Now the 8GB and 16GB iPhone models have appeared in Play.coms online shop, with an even more wallet-rending £549.99 and £599.99 (respectively) price tag hung around their necks.
The difference here is that Play.com is offering sim free, unlocked iPhone handsets, with the extra costs presumably being added to compensate for the lack of O2 support.
The 16GB model is already out of stock, although its difficult to tell whether this is due to demand or limited supplies (we suspect the latter at this stage). This news comes after O2 announced its now giving the 8GB iPhone away for free when tethered to a lengthy 24 month contract.