Apple’s iPhone has an amazing feature that’s not listed on the Apple website or any technical spec sheet…it’s trade-in/aftermarket value! When you purchase an iPhone for $199 the price has been subsidized by the carrier. The carrier covers part of the cost of the hardware knowing that you have committed to a two year contract, allowing them to comfortably recover their cost (and a whole lot more).At the end of the contract period you get to walk away with the iPhone and re-sell. Someone who does not wish to sign a contract with a carrier can then purchase the iPhone and use without a carrier commitment. The lack of a contract allows for the price to generally be higher than the original subsidized price.
For example, I recently sold my two year old iPhone 3G for $235 on craigslist. I paid $199 for the phone two years ago. This basically covered the cost of a new iPhone 4. Each time Apple releases a new phone it’s simple to sell the old model and cover the cost of the latest and greatest (of course signing a new contract with the carrier).
Currently here’s what you can expect to get for your hardware in the iPhone aftermarket:
Tips for re-selling your iPhone:
- Best places to sell: Craigslist, ebay
- Keep your phone in good condition – use a case/screen protector – any damage will hurt your resale value
- Jailbreak and carrier unlock – some users will want to switch carriers
- Keep original packaging/accessories
- Include any additional accessories if they don’t work with the new model – this will differentiate your sale from the crowd.
This aftermarket works for most subsidized phones, I just happen to have experience with the iPhone. I highly recommend upgrading each time a new model is released – what do you have to lose? Unless you hate being tied into the carrier contract hell. Personally it doesn’t bother me to have a contract.
Good luck in the aftermarket!!
