AT&T today announced that it has dropped prices on its stocks of refurbished iPhone 3G models while supplies last. Pricing is now set at $49 for 8 GB models and $99 for 16 GB models in
both black and white.

New pricing available in AT&T stores for iPhone 3G refurb devices! $49 for 8GB, available in black, and $99 for 16GB, available in black and white. Available in our stores while supplies last. Contact your local AT&T Store to check availability. Search here for a store near you: http://www.wireless.att.com/find-a-store/
The move comes as many AT&T iPhone customers anxiously await the launch of MMS functionality for the iPhone in the U.S.

Im telling you people everyone in school will have one of these babies up and running and im sure mama and papa will NOT be happy with the bills. I sure hell dont pay that nasty data plan but this is the only way to get it that cheap, I do wonder if you can get it for that cheap on e-bay?

UPDATE: nope eBay is so expensive.