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The plummeting resale price of obsolete iPhones and the value of being contract free
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Addicted to MacNN
Join Date: Dec 1999
Location: Tampa, Florida
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Now that the iPhone 3G is available for $99 w/contract, are obsessive upgraders finding more and more difficult to eBay your current phone for the usual $350+ it once demanded? Moreover, with the decidedly declined battery life and scratched glass, would you feel lucky to get just enough $$$ to pay for new subsidized hardware?
How do you put a price on being contract free? This is a nebulous valuable thing that used phone buyers weigh in, but how valuable is it really?
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Administrator 
Join Date: Apr 2001
Location: San Antonio TX USA
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I've never had any difficulty with having a contract for my cell service. Of course I use a cell phone as a tool, not a fashion accessory or toy that I might get bored with at any moment...
What I get WITH a contract is support, reliable and consistent plan pricing, and usually an opportunity at the end of the contract to get either the same rate after the regular rate has gone up or a discounted rate (I've taken advantage of both). I've been a cell phone user since about 1993 (I was a trained Oki cell phone technician in the mid '80s in a previous life), and I have never had any reason to think that a contract was anything but a win-win for me and my carrier; I get that consistent, generally lower than month-to-month rate, and they get consistent revenue from me.
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Glenn -----
OTR/L, MOT, Tx
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Forum Regular
Join Date: Feb 2000
Location: Los Angeles, CA USA
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People are thus far pretty disappointed with the scope of the 3GS upgrade vs. the 3G. I am off contract since I paid full price for my 2G on iDay. I was thinking of picking up a 3G on ebay to get some of the features I am getting screwed out of being a 2G owner (GPS, A2DP) so I can keep my free upgrade for the next gen.
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Mac Elite
Join Date: Dec 2001
Location: Durham, NC
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It also remains to be seen whether the resale prices of older iPhones will really plummet that much. A quick glance 'round eBay and craigslist suggests it hasn't yet. Kinda makes sense, since the target market for these are going to be people who are trying to avoid renewing a contract. That is, the used phones just need to beat the new ones' contract-free prices, which are going to be north of $500.
If I see a used, decent-condition 16GB 3G in the $150 ball park in the next few weeks, I might grab one to tide me over while waiting for a 64GB model. Otherwise, I'll probably bite on the 32 GB 3G S.
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Forum Regular
Join Date: Feb 2000
Location: Los Angeles, CA USA
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Having not previously checked the prices on used 3G iPhones, I can't say this with a great deal of certainty, but these phones really hold their value. The cheapest I've seen ANY working (no cracked screen, etc.) 3G phone was for $290. If prices drop to around $150 after June 19, I'll get an 8gb 3G. If not, I'll either wait until I can afford the 3GS or just wait for the next generation.
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Addicted to MacNN
Join Date: Dec 1999
Location: Tampa, Florida
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Originally Posted by ghporter
I've never had any difficulty with having a contract for my cell service. Of course I use a cell phone as a tool, not a fashion accessory or toy that I might get bored with at any moment...
What I get WITH a contract is support, reliable and consistent plan pricing, and usually an opportunity at the end of the contract to get either the same rate after the regular rate has gone up or a discounted rate (I've taken advantage of both). I've been a cell phone user since about 1993 (I was a trained Oki cell phone technician in the mid '80s in a previous life), and I have never had any reason to think that a contract was anything but a win-win for me and my carrier; I get that consistent, generally lower than month-to-month rate, and they get consistent revenue from me.
I can get the same reliable and consistent pricing in a month-to-month plan, at least with Verizon. My point is, IMO being contract free seems like a valuable condition, but how valuable exactly? $300 to avoid a 2 year contract?
If I am on a monthly basis, what kind of support will I be denied of?
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Addicted to MacNN
Join Date: Oct 2002
Location: Washington, DC
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Originally Posted by slugslugslug
It also remains to be seen whether the resale prices of older iPhones will really plummet that much. A quick glance 'round eBay and craigslist suggests it hasn't yet. Kinda makes sense, since the target market for these are going to be people who are trying to avoid renewing a contract. That is, the used phones just need to beat the new ones' contract-free prices, which are going to be north of $500.
I think this is exactly right.
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"One ticket to Washington, please. I have a date with destiny."
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Fresh-Faced Recruit
Join Date: Mar 2007
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Originally Posted by The Godfather
Now that the iPhone 3G is available for $99 w/contract, are obsessive upgraders finding more and more difficult to eBay your current phone for the usual $350+ it once demanded? Moreover, with the decidedly declined battery life and scratched glass, would you feel lucky to get just enough $$$ to pay for new subsidized hardware?
How do you put a price on being contract free? This is a nebulous valuable thing that used phone buyers weigh in, but how valuable is it really?
Being contract free means d!ck unless you are planning to upgrade to something... contract free is just a nice stepping stone when you are waiting for the next cool phone... if you're not planning on upgrading phones or switching service, it really doesn't matter if you're on contract or not... contract free is just a means to an end... not an end itself...
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---------------------------------------------
MacBook Pro 15-inch 2.2Ghz/200GB 7200rpm HD
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Administrator 
Join Date: Apr 2001
Location: San Antonio TX USA
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Originally Posted by The Godfather
I can get the same reliable and consistent pricing in a month-to-month plan, at least with Verizon. My point is, IMO being contract free seems like a valuable condition, but how valuable exactly? $300 to avoid a 2 year contract?
If I am on a monthly basis, what kind of support will I be denied of?
I just don't see the benefit in avoiding a contract. Of course I'm settled where I live and don't plan to move in the foreseeable future, but aside from urban mobility, what benefit do you get from going month-to-month? As for support, one benefit I get is a discount on new hardware after a set length of time. Like getting the discounted price on my last (...thinks hard...) four phones at least.
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Glenn -----
OTR/L, MOT, Tx
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