Apple has started flogging unlocked models of its popular iPhone 3G in Hong Kong which allow users the freedom to select whichever phone company they want.

The eight gigabyte version was on sale Saturday at Apple's online store for $692 US dollars while the 16 gigabyte model was $794. Apple said the phone can be activated with any wireless carrier.

Apple has been tying the phone exclusively to a single mobile operator in each country or territory to make huge wodges of cash.

Until now the iPhone 3G was previously only officially available in Hong Kong bundled with a two-year contract from tycoon Li Ka-shing's Hutchison Telecom, on tariff plans ranging from $188 to $498 a month.