Those iPhone Suckers

On Friday, John Gruber noticed the Macalope's point that iPhone unlocking is in danger of extinction.

Today Jason Kottke checks out eBay (if you don't remember what eBay is, ask your parents about it!) and notices iPhones are going for a premium. The ability to unlock can net you $200 over the price of an iPhone 3G.

OK, not everyone's going to get that much. But, just for fun, let's say you bought an 8 GB iPhone the day they were released for $599. Months later you got an Apple Store gift certificate for $100 when the price was cut, meaning you're effectively out only $499 (yes, assuming you were going to buy something from the Apple Store anyway). Now, you turn around and sell it on eBay for $400.

Your total cost for that 8 GB iPhone?

$99 plus tax.

The Macalope doesn't know about you, but he's trying really hard to feel like a sucker and it's just not working.

Maybe he's doing it wrong.

[Chas_IC]

I'm keeping my original iPhone since there is no 3G service anywhere in my state. I might as well keep the old phone and the $20/month EDGE data plan, rather than getting a 3G phone with the $30/month data plan (which will only do EDGE here anyway).

[BradMcGonigle]

I unlocked my original iPhone that I waited in line for and just sold it via ebay for $410 + shipping. I double checked your math and it looks good to me. Sure can't beat $99 to get to use the original iPhone for just under a year and get to upgrade for free (and actually make money in the end)....even if it means I have to suffer with a Windows Mobile Blackjack for 3 weeks.

[Macalope]

It seems to the Macalope that you might have saved yourself the trouble and just sold it after the 3G ships. If people are buying for the ability to unlock, that's not going to change. It'll be interesting to see if the price drops or stays the same.

[moochida]

@ BradMcGonigle and Macalope -- What am I missing? You paid $99 and you now have no phone left in your hand. It's like you paid $99 to use iPhone for a year. Now you have to pay like everyone else to get a new one, right? I don't get how BradMcGonigle says he's upgrading for free and making money, even. I'm not attacking, I just want to make sense of this.

[Macalope]

You did pay $99 to use the iPhone for a year. Or, that's how much your iPhone depreciated over the year. That's *very good*. Brad did not really make money on the deal. It only seems like he's making money because the original iPhone's a sunk cost.

[ripragged]

I feel so used; cheap; dirty. Dang that was fun. Let's do it some more.