Refurbished 1st generation iPads have just had their prices adjusted to account for the release of the iPad 2. 16GB wi-fi are $349. A killer deal if you ask me and perfect if you can’t swing $499 but want to get in on iPad action :)
Keep in mind that Apple offers a full warranty with all refurbished items and you can still buy AppleCare for refurbished items. Honestly, opening the box you’d never know it had been refurbished.
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I'm a Mac geek.