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Some call it brilliant, others may call it taking advantage of the less technologically in-the-know public (which, technically, it is). But whatever you call it, if you have an iPhone and you act quickly, you can upgrade to the new 3G iPhone and even make money doing it.
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In case you hadn’t heard, on Monday Apple announced a new iPhone with built-in GPS and 3G Internet that’s 2x faster than the current EDGE service. The biggest news, however, is that it’s only going to cost $199. It will be released on July 11th.
For current iPhone owners interested in upgrading, here’s what you can do:
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Get a cheap replacement phone to use for the next month
Go to Best Buy or Walmart and buy the $15 AT&T Prepaid GoPhone by Motorola.
Take the SIM card out of your iPhone and put it in the new Motorola. It’s no longer prepaid, but a regular (cheap) cell phone with your number and service on it.
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Sell your current iPhone quick
Sell your current iPhone on eBay. They’re still selling on there for over $300. Some people don’t want to wait, some people live overseas, and much of the general public simply won’t find out about the new iPhone release for a while. The resale value is going to drop like a rock, so act quickly. I wouldn’t be surprised if you could get one for $100 bucks by this Fall.
Be sure to Restore your iPhone in iTunes before selling it, then just don’t re-sync your data to it so it’s empty. Whoever buys your iPhone just needs to take it to an AT&T store to get a new SIM card, then they can activate it in iTunes. It might be a good idea to include that info on a note in the package.
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Buy a new 3G iPhone and keep the profit
My iPhone sold for $340, but I wouldn’t be surprised if you got more than that. Now when the new iPhone comes out on July 11th, I’ll buy it for the $199 price tag and keep my $140 profit. Subtract the $15 temporary phone, eBay and PayPal fees, and I still make 100 bucks. Slick, yes?
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The fine print
I’ve made calls to Apple and AT&T with various questions on the nitty-gritty of this, and from those conversations and everything I’ve read it seems like the perfect plan. But here’s what you need to know:
First, the new 3G data plan will cost $10/month more than the current EDGE data plan, and it will be required with the new iPhone. This means if you have the lowest iPhone plan like me, your monthly bill will increase from $59.99 to $69.99 (plus taxes and fees, of course).
Second, AT&T has already stated that you’re going to have to renew your contract another two years when you buy the new iPhone. This may or may not be a big deal to you.
Third, AT&T has only released limited information at this time, so the specifics of upgrading, signing a new contract, etc. are all still kind of fuzzy. That being said, I encourage you to read up on this stuff like I have before jumping overboard. For example, some internal AT&T documents got leaked yesterday that make it sound like some current AT&T customers with non-iPhone phones may not be able to buy the 3G iPhone for the new low price. Now in reality, I’m using a cheap Motorola phone, but according to AT&T’s online account, I’m still using an iPhone. So according to my account I shouldn’t have any problems, but I also have friends with iPhones that I could stick my SIM card in solely to have in my pocket should reps at the AT&T store ask if I still have an iPhone. In other words, I have a backup plan.
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Everything I’ve heard makes me believe I’ll have no trouble upgrading to the new phone for the $199 price, but I can’t make you any guarantees if you decide to do this yourself. That said, get that iPhone on eBay quick if you’re going for it!
30 days and counting… I miss my iPhone already.
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When I called AT&T and mentioned the new, lower price of the next iPhone, the [apparently yet-to-be-informed] sales lady responded: “$199? No, there’s no way it’ll only be $199. Even our other phones like the BlackBerrys cost more than that.” After a moment’s pause I said, “Um, maybe you should check Apple’s site.” Her response?
“Oh wow. $199.”