said by fcisler 
:Upgrading your phone is not a break of contract.
You just don't get any equipment discounts. I don't know if they offered any discounts on the iPhone anyway.
iPhone contracting is weird. Even if you just got a brand new phone, you can still get an iPhone and it won't break your contract. You get the discount no matter what, and can even order it from the apple store. But, you have to sign a 2 year contract (regardless of your current contract status) in order to activate the iPhone. On top of that, signing the new contract doesn't mess with your normal phone upgrade eligibility.
