With the iPhone 3GS hitting the market last month the prices on the iPhone 3G tumbled to $99 for a brand new device with a new 2-year contract. Before the 3GS hit the market you could only get a refurb phone for $99.

Now that a brand new 3G sells for $99 AT&T has cut the prices on its refurb fleet to woo customers willing to take a chance on a refurb. The iPhone 3G refurb now sells for $49 online with a new two-year contract. That is a steal if you can live without the 3GS.

If 8GB at $49.99 isn’t enough storage for you, the refurb 16GB iPhone 3G can be had for $99 online. That is a cheap price, and for some the $149 saved compared to the iPhone 3GS will seal the deal. For others, the new sexy 3GS is well worth the extra green.

[via AT&T]