When the iPhone 3G S debuted last month, AT&T held on to the previous model as a less expensive option. This version is available now for just $49, but there’s a catch.The units selling at this price are not brand new — they have been refurbished. This means they have been purchased and then later returned for some reason.

As AT&T says:

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.

Getting this price requires agreeing to a two-year iPhone service contract. The regular price for a non-refurbished device with 8 GB of storage and this same service agreement is $99.

To learn more about this deal visit AT&T’s website.