At this rate, we may one day see AT&T offer an iPhone for free with a two year agreement. Instead we are now greeted with a price drop to $49 for a refurbished 8GB iPhone 3G. Maybe Apple is really pushing out all the stops in attempting to get rid of the older models? Luckily the 16GB version is also reduced in price to $99 which isn't that bad of a deal as well and still available for purchase. Being competitively priced, consumers shopping around will really keep in mind the deal that's going on right now. On top of it all, buyers will also receive free two day priority shipping. You never know, it may even go down more if stock levels are not where they want it to be.
source: AT&T Wireless