My friend purchased his iPhone 4 in Janurary '11. The Verizon store setup his phone. He never has plugged his phone into itunes. I want to update all his stuff and setup up iCloud for him. When I plugged his phone into itunes, it asks if I want to "Set up as a new iPhone" or "Restore from the backup". There is no relevant backup to use. If I "Set up as a new iPhone" will this delete/erase his contacts? His contacts is the only thing he is concerned about losing. Thanks!