How low can you go? iPhone 3G 8GB refurb now available for $79, 16GB for $129

When Apple announced that the iPhone 3G would drop in price to $99 with the introduction of the 3GS, it was a big deal. It wasn’t much of a surprise of course as we had been expecting the iPhone to dip below $100 for quite some time already, but a big deal none the less. As was also expected, AT&T has just issued its first round of refurbished iPhone 3G models since the price cut and the prices, though not nearly as reduced as we’re used to seeing, are lower still: $79 for an 8GB model and $129 for a 16GB model. This poses the question, is the iPhone 3G any more attractive at these price points? Of course the real barrier for many is the additional cost of ownership over two years — a minimum of $1,680 plus taxes and fees on an individual plan. We know that lines up well with flagship phones from other carriers but a $79 handset isn’t competing with flagship phones anymore where cost and demographics are concerned. After all, $79 phone is what people spend on a phone when they don’t care what phone it is; the cost of owning said phone will likely come in at just over half of what an iPhone will cost over two years. What do you guys think — is an $80 iPhone 3G a great buy or is AT&T wasting its time with these new lower price points?

[Via TUAW]

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