who are these people buying used iPhones for $350~$500 on eBay?

[coolwater]

I am amazed and I have 2 questions:

1. I understand if you buy a used iPhone, you don't have to sign up for AT&T's 2-year contract. But, it still amazes me people would pay $350~$500 for an iPhone just to avoid the 2-year contract. Maybe I don't understand something here; can someone enlighten me?


2. If you can sell your current iPhone for top dollars on eBay or craigslist, why complain about AT&T/APPLE not willing to give you the same deal as new comers? Why not just sell your iPhone and pay for the upgrade?

 

[zorahk]

Most of the ones selling for 500 are unlocked, and you can only do that with ones manufactured before september 2008.

Make sense now?

 

[coolwater]

Enlighten me further please

Most of the ones selling for 500 are unlocked, and you can only do that with ones manufactured before september 2008.

Make sense now?

Please enlighten me further. What do you do with an unlocked iPhone? Can you use it with other carriers like Verizon or Sprint? If yes, can you still access the Apple Apps store and download apps even though you're not with AT&T?

Anything else with unlocked iPhones?

 

[iMrNiceGuy0023]

you can use unlocked phones on any Gsm carrier with a sim card around the world in different countries

 

[coolwater]

Apple apps too?

you can use unlocked phones on any Gsm carrier with a sim card around the world in different countries

Yes, but can you fully access Apple Apps store even though you're not with iPhone carrier?

 

[michael.lauden]

they are people who don't want to sign a contract, who need to use it in other countries, or just don't know the value of an iPhone and look at 'completed listings' and think they are getting a deal.

 

[anjinha]

Yes, but can you fully access Apple Apps store even though you're not with iPhone carrier?

Yes.

 

[m1key]

Here's a good reason: When you buy a phone unlocked you don't have to pay $30 bucks a month for internet. That's how AT&T can sell these phones so cheap, they make their money back on the data plans. Also, AT&T is super expensive in general, I mean seriously - $20 bucks a month for unlimited text messaging? I used to have sprint and paid $12 dollars a month for the same thing - AND it included MMS! So people buy these unlocked phones to use on T-Mobile and get a more affordable plan.

 

[Revelation78]

That's how AT&T can sell these phones so cheap, they make their money back on the data plans.

Actually AT&T makes their money back through the calling plan. The Data is bonus and is a huge influx of cash to upgrade the network. Most phones even the free ones are subsidized upwards of $200; their subsidies, just like the iPhone are paid back through the calling plan.

Also, AT&T is super expensive in general, I mean seriously - $20 bucks a month for unlimited text messaging? I used to have sprint and paid $12 dollars a month for the same thing - AND it included MMS! So people buy these unlocked phones to use on T-Mobile and get a more affordable plan.

I agree they charge a pretty penny. You can't really compare Sprint's rates with AT&T as Sprint is losing about 40,000 customers a month. They had to lower their prices to try to retain people. Sprint used to be more expensive than AT&T.

T-Mobile has always been and will always be the low-cost carrier, you have a valid point there. One thing to note, however, is the 3G and 3GS are not compatible with T-Mobile's emerging 3G network. You'll be stuck on Edge if you move over to T-Mobile.

 

[coolwater]

I see

Here's a good reason: When you buy a phone unlocked you don't have to pay $30 bucks a month for internet. That's how AT&T can sell these phones so cheap, they make their money back on the data plans. Also, AT&T is super expensive in general, I mean seriously - $20 bucks a month for unlimited text messaging? I used to have sprint and paid $12 dollars a month for the same thing - AND it included MMS! So people buy these unlocked phones to use on T-Mobile and get a more affordable plan.

Thank you.

So... Apple Apps download is not related to AT&T data plan at all??

And, you can use unlocked iPhone to get internet free in any wi-fi hotspot like a laptop?

 

[Revelation78]

Thank you.

So... Apple Apps download is not related to AT&T data plan at all??

Correct

And, you can use unlocked iPhone to get internet free in any wi-fi hotspot like a laptop?

As long as it is an open network, requiring no password or purchase.

 

[m1key]

I agree they charge a pretty penny. You can't really compare Sprint's rates with AT&T as Sprint is losing about 40,000 customers a month. They had to lower their prices to try to retain people. Sprint used to be more expensive than AT&T.

So what if Sprint is losing 40,000 customers a month? I'm using them as an example since I have personally used their service. T-Mobile certainly doesn't charge $20 a month for their unlimited texting either. My point is that AT&T is EXPENSIVE.

 

[coolwater]

thank you

Okay. I think I get it now.

Thank you guys.

 

[jaredririe20]

Thank you.

So... Apple Apps download is not related to AT&T data plan at all??

And, you can use unlocked iPhone to get internet free in any wi-fi hotspot like a laptop?

That's right.

I have an unlocked iPhone 2G and I use it with T-Mobile. My family plan has unlimited texting ($15/month for 5 phones and includes SMS, MMS, etc.) I don't pay for a data plan with T-Mobile.

To put it simply, my iPhone 2G does everything an AT&T iPhone 2G does except for edge/3G and horrendous prices.