Per AT&T representative Brad Mays, current iPhone customers can of course upgrade to the 3G iPhone and pay $199 for the 8 GB model or $299 for the 16 GB version.  They will need a new two-year contract. Customers who purchased a 2.5G iPhone on or after May 27 and want to swap it out for a new iPhone will be able to do so. without incurring an additional handset charge for the new device.  (There will be a 10 percent re-stocking fee.)  They will of course need to turn in their 2.5G iPhone.  For other

situations, there will be an unsubsidized price, which we have
not yet announced.  We will announce that price in the coming weeks.

Also, whether you are feeling a bit peeved that you just bought the 2.5G iPhone, fret no more, whether you purchased the 2.5G iPhone after May 27th you will be able to swap it out for the new iPhone. Of course you will have to turn in your old iPhone, and there will plus be a 10% restocking fee.

Stay tuned for more updates.

Orginal post by Bree Pearson

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