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Comment by wtandy | Hacker News Reader

My thoughts exactly.

However, this works VERY well with iPhones. I have had every iPhone starting with the 3G, and have upgraded each year. Both times, I have sold my previous phone on ebay for at least $100 MORE than the subsidized cost of my new one.

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> I have sold my previous phone on ebay for at least $100 MORE than the subsidized cost of my new one.

Are you paying the full price of the phone when you bought it? Or your cell plan paying part of it (subsidized)? In the later case, the sold phone is still being paid until the cell plan finishes.

You know the unsubsidized cost of the phone is about $800-$900 right? Those people you're selling to are buying it at one third the price.

Well aware of this (though I think it's actually $600 for the cheapest in the US). I'm simply pointing out that if you are planning to remain on a given network for a long time, there's no reason not to upgrade the phone every year to the newest available model AND make a little money.

Wait, i'm confused (i'm living in Europe): US carriers don't require you to sign another two year contract when you buy their new subsidized phone?

US carriers do require this. After one year, AT&T usually lets you get the newest iPhone at the subsidized cost if you sign another contract. It still locks you in to two years from the date that you last bought a new phone.

But is the old contract still in effect ? If yes, then the profit selling his old phone probably doesn't cover the money he must paid for one year left of the old contract. That's why i'm confused.

Why would you have two contracts?

Buy iPhone 3GS June 2009, Contract ends in June 2011. June 2010, sell 3GS, buy iPhone 4 and now contract ends 2012.

It is an early upgrade which requires you to sign a new two-year contract.

Effectively, the contract's life is "reset" to two years.

If you sell your phone in May and use a beater phone for a month you can sell it for another $100 more.

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