Why are 3GS iPhones still selling at a premium on eBay?

[illiniry]

There are seemingly lots of 3GS iPhones still being auctioned off on eBay for upwards of $250-300, but I don't have a clue why. Can someone please explain why people are willing to pay so much when the retail price is already lower?

As I understand it, unlocked and jail broken phones fetch a higher price but these are regular, used phones like the one I currently have. Why wouldn't I just sell my phone, keep the SIM card and then get iPhone 4 for basically nothing? Seems too good to be true, I'm hoping someone can shed some light on this. Thanks.

 

[NYY FaN]

retail price for iphones are not $200/300.. they are $600-700. Many people look to get used iphones because they are not due for an upgrade and it would still be cheaper to get an "expensive" used phone than a new one at full, non-contract prices.

 

[spicyj]

When you buy it at the retail price, it comes with a contract. You need to instead compare the eBay prices to the no-commitment prices that you pay to get the phone without service. ($400 more than the subsidized price.)

 

[Hellishness]

There will always be a market for unlockable, no contract iPhones for people who either don't wanna deal with the hassle for cancelling their service or are getting a better price by buying it online (iPhone 3GS= $99+$36 activation+$70 first month's service+$325 ETF+taxes on all of it).

 

[illiniry]

I was planning on trying to get rid of my 3GS before prices drop when the new phone comes out, can I keep the SIM card in it and sell the phone and then put the card in iPhone 4 and keep my same data plan?

 

[dave006]

Keep the SIM, it is has no use for the buyer.

No, you will receive a new Microsim with the iPhone 4.

Dave