Is it time to get a new (refurbished) 1.0 iPhone?

With iPhone 2.0 coming soon, a question I've heard many a current iPhone owner wanting to get the next iPhone ask: what do I do with my old one? This emerging question highlights the early-adopter's plight against the law of diminishing returns. It's doubtful that a current iPhone will fetch more than $100 on eBay. But you never know. This presupposes that people will dump their old iPhones for a new one, but the incentives are there this time around especially with the lowered price, and given our disposable cell phone culture, it's more than likely that people will replace. (This leads to other questions: if you plan to get a new iPhone anyway, why would you buy Apple Care when a new iPhone comes out each year? And, now, with an even lower price, why bother?)

For those who haven't replaced with iPhones and bought them near to day 1 last year when the 1.0 iPhone came out, the clock is ticking to replace them. I've seen these original 1.0 iPhones with batteries that are deteriorating and many 1.0 iPhone screens and cases that are scratched, rendering them even less valuable once iPhone 2.0 comes out.

In my case, I've been a bit luckier as this is my third iPhone which means it's still relatively 'new' (if not refurbished). There hasn't been noticeable battery deterioration (yet) nor is the iPhone scratched especially after I encased it in plastic - sounds like a good eBay tag, doens't it?

Given Apple's previous willingness to swap out iPhones over this past year, will Apple see a sudden surge of iPhones returned this month before the 1-year warranty window runs out? Will this willingness to accept returns for 1.0 carry over to 2.0 and be as generous? After all, when they replaced my dropped iPhone they said it was for research purposes, presumably for the 2.0 iPhone, but if this carries over to 2.0 iPhones is not clear. With mandatory in-store activation and a lowered price point, it doesn't seem like 1.0's goodwill will carry over into 2.0.

[sbwinn]

So the question no one is asking is what happens to the iPod Touch price? It was priced $100 less; now it is $100 more than a comparably equipped iPhone. The new 3G iPhone is $199 for 8GB and $299 for 16GB. The iPod Touch looks a little pricey at $299, $399, and $499. I know the iPhone has subsidies and contract money built into the low price, but you must admit that it makes the iPod Touch sticker price look bad, especially when you know it is less hardware for more money (at least on the surface).

[bluerain44]

I have a 1.0 IPhone.

I get a plan that is $10 cheaper per month, has 200 SMSes included and unlimited surfing (edge, of course.)

The GPS, I admit, would've been nice.

However, I'm not going to sign up for a new plan (and pay ATT&T more $).

I'm sure there will be an upgrade path, and I'm sure I'll get some kind of coupon in my email. They need the revenue.

[Don Key]

To sbwinn:

I thought that exact same thing at first about the price of the iPod Touch vs. the new iPhone then I found out that you can't leave the store with a new iPhone unless you enter into the 2 year AT&T contract. Before you could just get the iPhone and never register it but now you're forced to.

[Vegaman_Dan]

With the Touch prices as high as they are in comparison to an iPhone, I would expect it is now a better deal to buy a used 1.0 iPhone and never use the cell phone feature. You'd get all the software updates without having to pay $10-20 a pop and probably still go with another carrier if you wanted to later.

The Touch is very thin and very cool, but at these prices, it doesn't have much longer to live unless they drop the prices soon.

[jdavidlove]

Uh, I understand existing phones are going to get the 2.0 firmware upgrade. Minus the GPS and the 3G, I think that the 2.0 upgrade will give us current owners plenty of reasons to be happy with our current phones.

I really want an Iphone but I want to stay with verizon. What are my options?
Mark