The economy keeps playing Yo-yo, and the consumer is looking for ways to save money on gadgets and everyday items. Buying a refurbished iPhone is one way to save some money while getting a cool gadget to play with. Refurbished iPhones are not different from their brand new counterparts, and you are not buying a brick-waiting-to-happen by getting a refurbished iPhone 3G. AT&T understands the appeal of refurbished iPhones to the consumers, which is why it has started to drop its prices on these.

iPhone 3G 16 GB going for 50% off is a pretty impressive deal. But you still have to sign up for that 2 year contract with at&t. That is the deal breaker for a lot of consumers here. You can’t expect to save any real money if you are paying for a hefty contract for 24 months. Will this promotion work? There is not enough information to determine that at this point. But it would be nice if at&t dropped prices on its plans as well.

Your take: would you buy a refurbished iPhone if it meant you saving $100 or so on the device?