Continuing that slow march toward a free-with-contract iPhone, AT&T is offering a refurbished 8GB iPhone 3G for $79 with free 2-day shipping (saves you $20 from the regular $99 price).

When Apple first announced the $99 iPhone 3G, I knew a free iPhone (with contract) was just around the corner. I’m guessing it’ll happen around Black Friday, then come back in late spring 2010 to clear inventory. And when it happens, a lot of iPhones will fly out the door. I know free attracts a lot of eyeballs, but the real hurt comes with the first AT&T Wireless bill.

Link:

Refurbished iPhones at AT&T Wireless