Existing users, 
First-generation iPhones still fetching high prices
Posted 16 June 2008 @ 11am in News
Despite the imminent release of the iPhone 3G, first-generation iPhone models are still commanding high prices on eBay and other resale venues, indicating concern over the ability to unlock and/or jailbreak the upcoming model combined with significant demand in countries where the iPhone 3G will not initially be on sale, including Russia and China.
A cursory scan of eBay reveals several listings of unlocked, 16GB, first-generation iPhones with bids in excess of $600. The phone retailed for $499 before it was discontinued.
The iPhone unlock market has proven lucrative for grey-market entrepreneurs who bought dozens of iPhones to resell as carrier-agnostic in international markets. With the iPhone 3G, however, Apple has transitioned its partnership model to a more traditional format: wireless companies pay an up-front subsidy to Apple, allowing iPhones to be sold at a discounted rate, and eschew the monthly stipend, instead keeping the entire monthly subscriber yield to themselves.
Feedback? info@iphoneatlas.com.
Print This Post
2 Comments
Posted by Chas_IC
16 June 2008 @ 4pm
Original iPhones may continue to retain their value even after the 3G ships, once people discover that 98% of the US doesn’t have 3G access, and the old EDGE plan is $10/month cheaper.
Posted by dryan0021
16 June 2008 @ 8pm
I’ve heard that (1) Apple may release iPhone OS 2.0 at the end of June or beginning of July, 10-12 days before the second gen iPhone goes on sale, and (2) iPhone OS 2.0 may be substantially more difficult to unlock. I’m not sure I can bear to continue using OS 1.1.4 once OS 2.0 comes out but before the second gen iPhone has gone on sale. But those ten days of OS 2.0 use could cost me $200-300 in first gen iPhone resale value if OS 2.0 can’t be unlocked anytime soon. Is that part of Apple’s rationale for releasing OS 2.0 10-12 days before the second gen iPhone goes on sale? Or have I been watching too many conspiracy theory movies?