
If you want to save some money on an iPhone 5 by paying $100 less than you usually would, then buying refurbished instead of new is an option. AT&T is just beginning to offer refurbished versions of the iPhone 5 starting at $99 for the 16GB model and working its way up: $199 for 32GB and $299 for 64GB.
With the iPhone 5 being so new, chances are that any refurbished unit is going to be in great operating condition. That being said, it should work like new and should look like new too. It could be worth looking into one if you have to do some family shopping for the holidays, since it would save you a lot of money in the long run if you were to buy more than one.
The refurbished iPhone 5 units are only available from AT&T online, however they are available in every storage size and in every color. You will also have to sign a two-year contract with AT&T to get the iPhone 5 at this price, however the shipping is free.
You can access all of AT&T's refurbished iPhone 5 choices from this link.
AT&T also sells refurbished iPhone 4S units starting at 99¢ each. The iPhone 4S is still a perfectly capable iOS device, although lacking LTE, and could also be a great option as a gift this holiday season.
EDIT: The price of the refurbished iPhone 5 has been increased to $149 for the 16GB model, $249 for the 32GB model, and $349 for the 64GB model.
Sources: AT&T via 9to5Mac



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