Refurb 8GB iPhone for $249 from AT&T [Updated]

AT&T is now offering refurbished 8GB iPhones online for only $249. They require a 2 year contract*, and a limit of 1 per customer.

There had been rumors of this deal at select retail AT&T stores, but this is the first we've seen it offered online.

$249 for an 8GB Refurbished iPhone represents a significant savings. A new 8GB iPhone currently retails for $399.

* No contract is required upon purchase, but only when you activate with iTunes.

Update: The deal has been removed from the AT&T site. It is not known when or if it will return.