Everyone rushed out to buy 3G iPhones last summer, and signed a 2-year contract in doing so. If they release another one this summer, since you're in a 2-year contract, you're probably not going to be eligible for subsidized pricing on a new one. You got the lower price going from the EDGE iPhone to the 3G because the EDGE version didn't have a subsidized price. I wonder if the Apple faithful realize this, and how they'll react when they find out. So many of us are used to being able to run right out and buy the newest, latest, greatest Apple product as soon as it's released. They *could* make an exception for existing iPhone users, but this would be way out of character for how mobile phone service providers have operated for years. But I'd plan on not being able to upgrade mid-contract at a subsidized price.