Company M released a product for Mac. Apple then gave an iPhone to everyone on the team that produced the product. Free.
As in no charge.
2-year AT&T contract not included, of course.
(On a side note, I finally played with the Sprint Touch today. It’s very cute, much smaller than I expected.)
[Update @ 2008-02-06T09:42-8:00] Turned out it was company M that bought the iPhones for its employees.