I have spoken with both Apple and AT&T regarding how the iPhone is going to be sold. AT&T had less information than Apple did, who told me that a 2-year contract will be required when purchasing the iPhone. That news is not new and while AT&T concurred with that however neither company had any details on those customers who already had Cingular wireless contracts, although most likely one would be able to renew for another two years. AppleInsider reported that Cingular stores are taking phone numbers of customers to be notified the moment the iPhones arrive and are asked whether they are upgrading (as a current customer).
As for gifting and purchasing the phone without purchasing a contract, Apple had no information on that yet but said more details would most likely be available closer to the June launch date. Apple is all about gifting so I wouldn’t be surprised if they allow you to purchase the unit as a gift and without a contract.
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