Why Are Old iPhones Fetching Top Dollar On eBay?

In these patriotic times you've heard the saying, "Freedom isn't free," right?
It seems this goes for both liberty and iPhone calling plans. (Yes, we know its a stretch. Please don't be offended.)
The new iPhone 3G, announced by Steve Jobs earlier this month at the Worldwide Developers Conference and hitting Apple Store shelves July 11, will start at $199 for the 8-gigabyte (GB) model and $299 for the 16-gigabyte (GB) model. The relatively low retail price is possible because AT&T is heavily subsidizing the cost of the phone and will make it's money back on the service plan. One trick of the new iPhone is that buyers must activate an account with AT&T.
So what if you want to use an iPhone but prefer another service provider?
Then the old iPhoneis your answer, and this solution is not lost on people in the market for a little service freedom.
Older unlocked 8-gigabyte (GB) and 16-gigabyte (GB) iPhones are going for about $400 and $585 respectively on eBay. That's more than what they would sell for at retail.
In order to make a new iPhone work on a network other than AT&T, you'd have to buy the phone, sign up for the service, then cancel the service with a $175 penalty, and then unlock your phone and sign up with your service provider of choice.
Or just get an old unlocked iPhone and avoid the AT&T mess altogether. [Source: Kottke.org]





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Comments
7
Subscribe to commentsR1cebrnerJun 24th 2008 1:48PM
199+175= 374 still less that about 400 for a used one
JohnJun 24th 2008 2:00PM
Since the new phones will be more heavily subsidized, I'll bet the cancelation fee will be much higher than the current $175.
artJun 24th 2008 5:48PM
This is a DIRECT INSULT to our Veterans and current military. When any term generally connected to service to the country is used to expoilt some commerail objective, I take great offense!
KurtJun 24th 2008 8:45PM
I thought the military fight for the freedom so that our corporations can exploit us? Come on now. You have to be CONSISTENT in your support. The US Military is just another branch of Corporate America.
RichJun 24th 2008 9:00PM
Why buy an old 16GB Iphone on ebay for 585.00 ? You can sign up with At&T and get the new Iphone for 299.00, cancel for $175, that would only be 474 dollars and you have a new one.
carol vegaJun 25th 2008 1:48AM
I like the push-button phones around the house. They are easy to clean and to fix, can be worked silently in the dark if there's an emergency, and they are readily available in decorator colors at garage sales and thrift stores. I know some old folks who love the wall phones with dials from the 1960's. Who says we can't do without these new-fangled, expensive gizmos!
JasonJun 25th 2008 9:25AM
How do you unlock an iPhone?