It is common knowledge that Apple updates its products every year or so. I know it, my little sister knows it, a majority of consumers know it, and every other single major corporation should know about it, including At&t What is different with apple, is that many of its consumers upgrade their products every year or so, coinciding with the release of their updated products. Not so much their computers, but definitely their iPods and iPhones. Rarely, do other companies have this effect on their consumers, more or less actually update their products every year like apple does. Apple has a very unique business structure. Many people argue that the iPhone is no different than any other phone in terms of subsidizes and contracts, etc; however, I would disagree with this statement. The iPhone is the most unique product in the mobile phone industry, aside from the Pre. It is true that 3g customers knew full well that by buying the iPhone they would be locked into a 2 yr contract and risk a more expensive upgrade. However At&t should have known that a majority of 3g owners would want to upgrade to the newest phone when it is released about a year later. So did consumers for that matter. Yet the consumers have very little say since At&t leaves no options for 1 yr contracts etc. At&t should give their customers OPTIONS. They should EXPECT that customers will want to upgrade, and therefore provide options. You dont provide reasonable options, customers get pissed. Otherwise its no iPhone period or iPhone every two years(which people dont want to be stuck with). Bottom line, both parties knew exactly what was going to happen. Customers have no say in the matter. At&t does.