I was at the local costco and asked the guy at the cell phone kiosk if he carried the iphone (since costco sells the entire ipod line). He said no, iphones are only sold at the apple store or att store. However, he did say I could do this: 1. Sign up for a new at&t contract, with no activation fee, get a new freebie phone or $29 motorola razr, etc, no rebates. 2. Go to apple store, purchase the iPhone. 3. Transfer my new at&t plan to the iphone. 4. Keep the new (non iphone w/out service) as a backup/sell on ebay/give to a family member. It seems to make sense since I would be buying the iPhone outright. I checked the apple website and it also says you can transfer your service even if you're under a contract. Has anyone done this or something similar? Anyone see any flaws in this scenario?