The $99 is available via ATT Wireless, which is actually a refurb version of the iPhone 3G 8GB. It comes with a 2-year plan which includes both voice and data. If you are ready to shell-out another $100, you can get the 16GB iPhone 3G again with a 2-year contract.
These prices are effective until Dec. 31, 2008. After that, both prices will be $50 higher. So hurry, if you wanted to get an iPhone.
Should you get a refurb iPhone?
According to AT&T, “Refurbished phones are previously owned devices that have been unused or lightly used and returned during the 30-day trial period. Each refurbished phone is independently quality tested and loaded with the latest software to meet current factory standards. Some refurbished iPhone 3G devices will have minor scratches. Refurbished iPhone 3G devices carry a warranty of 90 days or more.”
In the end, it looks pretty much like a safe deal to me.