When I bought my iPhone 4 at an Apple Store, I was charged an $18 upgrade fee and an $18 activation fee. I went home, called ATT and asked (nicely) them to remove both as I feel the fees are excessive. They balked, I said I was returning the phone and canceling my new contract as I pay you $80 a month with no discounts. They ended up giving me a $45 credit on my next bill.