We previously reported that resale prices for the original, non-3G iPhone had hit rock bottom. This was bad news for owners upgrading to the new iPhone 3G who had hoped to resell their older model. However, demand for an iPhone that doesn't require a two-year contract, as well as the fact that the original iPhone is somewhat more unlockable than the iPhone 3G, have caused a resurgence in resale prices for the original iPhone.
For example, the new site http://www.freeiphoneswap.com offers $100 for a 4 GB EDGE iPhone, $200 for an 8 GB, and $300 for a $16 GB. The company also covers all shipping costs. FreeiPhoneSwap also offers drop boxes for those of you who are lucky enough to live in NYC, Caldwell, NJ, or Long Beach, CA, as well as for those of you who are unlucky enough to live in Miami.
(Just kidding - we're sure Miami is a lovely place to live. But there is really a drop box there.)
Meanwhile, prices for the original iPhone on eBay have reached even higher numbers than what FreeiPhoneSwap is offering, with 8 GB models often approaching $300 price tags.
The bottom line: If you've got a first generation iPhone you're looking to sell, now is a good time to do it.