And that 77% are selling their older iPhones to people who are most likely NEW users. I know I am. A friend’s son wants my iPhone 3G and is willing to pay for it. It will give them 3 iPhones for 4 people. (his poor dad is the odd man out!)

that’s definitely beneficial for you and AT&T (provided the new buyer joins AT&T).

Oh, he will. Family plan and all. Not many 16 year olds are going to risk jailbreaking a new phone when mom is paying the AT&T bill!

This just in: 100% of iPhone users have sub-60 IQs.

Not many 16 year olds are going to risk jailbreaking a new phone when mom is paying the AT&T bill!

No, but they will comment on the story.

@Tiger,

And, what do you think your old iPhone 3G is worth?
I am asking because my wife just got a new iPhone 4 and gave our daughter her old 3G. Swap SIM cards and daughter has better phone.

So, today, at lunch my wife says: “Why don’t you buy a used 3G and replace your Samsung POS? You just have to swap SIM cards and you don’t need an AT&T data plan as you can use WiFi.”

I said great until I saw that people want $250+ for old iPhones. My reaction is WTF! I think a 3G should be worth about $50 USD. I am confused by the high prices. How are they justified?

Oh, he will. Family plan and all. Not many 16 year olds are going to risk jailbreaking a new phone when mom is paying the AT&T bill!

You don’t know 16 year olds. Back at my high school (and this was 2 years ago) I did an informal survey and found that about 75% of the students jailbroke their iDevices. I think a big motivating factor was that many 16 year olds don’t have creditcards and can’t buy apps the legit way. And 16 year olds hate being told what they can’t do, even if it’s by Steve Jobs .

You just have to swap SIM cards and you don’t need an AT&T data plan as you can use WiFi.

NOT TRUE, BEWARE. I had a used iPhone 3G on at$t without a contract for about a year and a half using WiFi, but starting last month they changed their policies and as soon as they catch you they add the $30 a year plan WITHOUT EVEN ASKING YOU. So BE VERY VERY VERY CAREFUL, and learn from my unfortunate experience.

I am confused by the high prices. How are they justified?

Think about how much the iPhone 3G costs off-contract. $599 for the cheap one. Now used, they cost about $150. That is significantly less value.