So I was idly browsing the UK ebay prices for 3G iPhone 8GB completed sales. Lots of the completed sales are way over £350, some are slightly under but not much. I don't understand why people would pay that much for a second hand iPhone. O2 UK offers a brand new iPhone 3G 8GB for £350, and you get the warranty on that, plus pay-as-you go, plus 12months free internet (usually £10/month) or you can use it with any O2 tariff. If you don't make any phone calls in a month, then no need to pay for that month. If I got an iPhone off eBay, it's second hand, no warranty, and I still have to pay a fixed amount per month for internet access (£5-10/month from T-Mobile or Vodaphone or whoever). If we value the O2 free 12 months internet at £7.50/month, then that's £90, making it basically £260 for a new, warranted PAYG iphone from O2 UK. What's going on with the eBay prices?? I understand a little bit more for an unlocked iphone, but some of these prices are for non-unlocked. Some people are paying £400+. It's a similar situation with the 16GB iPhone. I hesitate to call people crazy, especially when there's so many of them. There must be some reason behind their madness.