If you are willing to buy a refurbished phone — which AT&T says is a previously owned phone that was returned during the 30 day trial period and has been tested — AT&T will sell you an 8 GB iPhone for only $99 and a 16 GB iPhone for only $199.
Click here for more details.
UPDATE on 1/6/08: The AT&T promotion is now over, but Best Buy will now sell you a refurbished iPhone for $50 off ($149 for 8GB and $249 for 16 GB).
Please note, that these refurb’ed phones do not come with the 1 year apple-care etc. I think it’s 90 days plus whatever was left on the original phone, or something to that effect. I would make sure to review that first before buying.
Good luck with this also. I logged in and the page that lists the iPhone disappeared. I called AT&T and was told that you cannot order an iPhone on line. You have to go into a store and the guy I spoke to said he didn’t think the stores had any refurbished phones at all.
It’s a good thing AT&T has a monopoly on iPhones. Their customer service certainly does not keep them in business.