Apple's iPhone is a popular product due to its many features. Not everyone who wants one has one, however, due to its price. The plans through AT&T are also quite expensive--the average monthly cell phone bill for an iPhone is around $100. If you want an iPhone but don't have the budget for a plan, you can easily turn an iPhone into a prepaid phone by removing the SIM card and replacing it with one activated for an AT&T prepaid plan.
Activate the AT&T SIM card online or over the phone. You can get a SIM card by visiting an AT&T store or taking one out of an AT&T prepaid phone. Be sure to choose a prepaid plan when activating the card.
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Press a paper clip in the hole on the SIM tray on the iPhone. On the original iPhone, 3G and 3GS, the SIM tray is located on the top between the "sleep" button and the headphone jack, and on the right side on the iPhone 4. The SIM tray will pop out.
Remove the SIM card, if there is one, and insert the newly activated SIM card in the tray. Pop it back in.
Turn on the iPhone. You should have full calling, texting and data access, depending on the prepaid plan you selected.