Okay, so there are some rumors swirling the intertubes that indicate AT&T’s intention to allow current iPhone customers to trade-in or trade-up their first-generation iPhone in exchange for the subsdized, lower $200 (or $300 for the 16GB variant) price-point for the iPhone 3G. I just wanted to give our readers a heads-up (and reiterate my previous post) on what’s really going on here.
AT&T will be offering their iPhone customers that bought an iPhone on or after May 27, 2008 the option to swap their current iPhone for an iPhone 3G – at no additional cost. In 
fact, AT&T will be refunding the cost differential between the first-generation iPhone and the iPhone 3G! Now that’s an incredible offer.
ALL other iPhone customers that bought their iPhone BEFORE the May 27, 2008 cut-off date can still buy the new iPhone 3G 8GB for just $200, or $300 for the iPhone 3G 16GB, by signing a new two-year contract and adding on the unlimited 3G data plan. There’s NO NEED TO SWAP your current iPhone for the subsidized pricing. As long as you sign that new contract (which replaces your current AT&T contract, regardless of how long you have left on your current contract) with a 3G data package, you’ll get the low-price offer and get to keep you old iPhone.
Of course, your phone number will be ported to your new iPhone 3G, so your old iPhone won’t be anything more than a thicker iPod Touch. So, you might as well gift it or sell it. Just make sure you wipe your personal data beforehand – don’t say we didn’t warn you.