Originally Answered: Iphone question (and ipod touch)?
you will still need to "activate" the phone thru APPLE
the $400.00 is a discount price, because AT&T assumes, if you by a phone from them, you will sign for 2 yrs of service. without signing for the cell service, they will make you pay FULL RETAIL PRICE ($600) so you don't have to get the service, they'll make you pay... one way or another. Also, if you're thinking about getting an I phone on-line... be careful, you may not get want you pay for. in either case, all the other functions will work, just not the phone part.