ATT customers can now buy an iPhone 3G for $99, but not from Walmart. Today, ATT Wireless released a refurb version of the iPhone 3G (8GB) for $99 with a 2-year plan which includes voice and data. Also available is the 16GB iPhone 3G for $199 with a 2-year contract. But you have to hurry, these prices are good only through Dec. 31, 2008. After that both prices will be $50 higher.
For those who aren't familiar with refurb devices, here are the descriptions and warranty info on refurb devices from AT&T:
Refurbished Phones and Devices 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. For details about the warranty on your refurbished iPhone 3G go to www.apple.com/support/oss/