IPhone 3GS for $49: Refurbished or New?

The currently listed iPhone 3GS on Apple Store, whose price was brought down recently to $49 to match the price that AT&T is now offering: is it the price for a refurbished unit or a new unit? My friend wants to buy it but heard rumors that it is not new but refurbished. Anyone knows what the deal is? Thanks.

What does it state on the site? Unless it specifically states that it is refurbished, it is new.
I never realized it was so difficult for adults to read for themselves.

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