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The buyer is probably based in Nigeria. If I were to sell my first generation phone I think I'd be happier to see it go for a normal price and trust the buyer than a ludicrous price and know that I was never going to get my money.
 
My wife sold her (unlocked) 8GB 1st gen on eBay for £225.00: It sold to a genuine buyer who paid promptly for it and was very happy with the transaction. My wife was also delighted because it was a fair price and a painless transaction (not always the case on eBay!).
I'd be very, very surprised if this sale is genuine, particularly with the private feedback setting of the buyer, but if it is, the seller has definitely struck lucky.

I've still got my old 16GB as I'm using it for development and testing, but if this is what iPhones are selling for, I may well be tempted to put it up for sale :D
 
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