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Estimating the Value of an iPhone 2G
Tuesday, June 24th, 2008 at 4:00 PM - by .(JavaScript must be enabled to view this email address)
That iPhone 2G may be worth more than people think. The new iPhone 3G will require in-store activation, and while it may still be susceptible to being unlocked, the purchaser will still be bound to a contract. Not so for the older iPhone 2Gs not on contract or never activated with AT&T, according to O’Grady’s PowerPage on Tuesday.
That’s something to think about when someone wants to buy your old iPhone. In fact, eBay shows prices still around the US$500 level and more if in the original box.
The thing to remember, according to Chuck Freedman, is that the new iPhone 3G is being subsidized. As a result comparing the iPhone 3G price of US$199 to an older iPhone 2G that can be unlocked and put on any EDGE cellular network is not comparing Apples to Apples.
"If you find somebody selling their first generation iPhone for US$50 or even US$100 you may want to scoop it up," Mr. Freedman said. "Even if you pony-up US$70 for an additional year AppleCare (iPhones are only eligible for a total of two years) you’re still getting a hell of a deal. Granted you won’t get 3G data, true GPS or that new iPhone smell, but hey, let the other guy take the depreciation on the new model."
iPO notes that T-Mobile, according to local sales reps in Denver, will happily place an unlocked iPhone 2G, with their own SIM card, on their EDGE network and add it to your family plan for US$10/month. However, the customer must deal with any existing contract and supply an unlocked iPhone.
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