Question/Idea about reselling iPhones on eBay

[Carnos Jax]

Let's say I"m a current iPhone user on AT&T, having just upgraded to the new 3GS.

So I go out and buy another 32GB iPhone 3GS for $299 (assuming I can find one) and activate an additional line on my account (so I incur an additional line charge of $9.99/mo and data plan of $35/mo).

Then let's say I cancel the additional line by paying the $175 (or is it $200?) ETF. So total I'm in for on the iPhone is around $500. I then sell the iPhone for $700/$800 on fleabay. Then repeat the process (or buy a couple the first time around).

What's the fly in this ointment?

[hal]

why would anyone give you $700-800 for it?

[space-time]

do they really go that high?

[(vikm)]

I thought you could buy them outright with no contract for less than that!?!?

[Carnos Jax]

All good questions guys. Just go to fleabay and see for yourselves though. I can't explain it, but the market is there.

[davester]

The catch is that the ones selling that high are officially unlocked phones, which sell for $799 at Buy.com. If you buy one with a contract from AT&T you will have to unlock it with aftermarket software which will break every time there's an OS update. You will not be able to sell a phone you bought under contract for that much money.

[Carnos Jax]

Interesting Davester, didn't know about "officially unlocked iPhones".

But for example, this one's not unlocked, and according to the seller (whom I've emailed) they bought it at an AT&T store (which I presume means they had to activate it w/a 2 year contract, hence the reference about removing the "activated SIM card" ): http://cgi.ebay.com/NEW-BNIB-Black-Apple...pported%22

Then there's this cat, I wonder what his story is (sealed, not unlocked, doesn't mention anything about contract): http://cgi.ebay.com/Brand-NEW-Apple-iPho...tsupported

Plus, if I'm not mistaken, on Buy.com you can only get 3G phones, not the newer 3GS.

[davester]

Well that is odd. Perhaps all those bidders are certifiably insane or perhaps they so desperately want a phone that is scarce right now that they're willing to pay anything for it. In that case you might have a shot, of making a small amount of money for a large amount of effort just so long as the shortage holds out. Risky IMHO.

[Carnos Jax]

I hear you. I'm just wondering if it's easy as it seems. What am I missing?

[DavidS]

Is this guy running his own AT&T or Apple store on eBay?