When the phone company gives a phone away for free, they're subsidizing the loss with the knowledge that they'll recoup the cost on what they gouge with the service plan.
Iphone is popular, so AT&T (and Apple) aren't offering to many pricing promotions on them, because they don't need to. A premium is price is important to the product's elite brand. And with the likely entrance of Verizon and others into the iPhone market this summer, AT&T is trying to get all the profit they can out of the iPhone before they lose significant marketshare. The reason for this is that in many major cities (e.g., NYC), their 3G network is pitiful and they'll need to make major network upgrade to keep customers.
If you found a refurbished iPhone, you probably got a good deal.
Iphone is popular, so AT&T (and Apple) aren't offering to many pricing promotions on them, because they don't need to. A premium is price is important to the product's elite brand. And with the likely entrance of Verizon and others into the iPhone market this summer, AT&T is trying to get all the profit they can out of the iPhone before they lose significant marketshare. The reason for this is that in many major cities (e.g., NYC), their 3G network is pitiful and they'll need to make major network upgrade to keep customers.
If you found a refurbished iPhone, you probably got a good deal.