Sony Ericsson K850

Ummmm, dont extend your contract unless you absolutely have too first of all. Second, of course anyone on here is going to say go with the Sony over the Apple, its just a better phone. As far as your purchase goes, im not sure if anybody is offering the k850 with an AT&T upgrade but you can get one brand new, unlocked, on Ebay for something in the ballpark of $400 U.S.

And if you want to compare just for kicks, the Nokia N95 might also be up your alley.