iPhone 4 Sees 400%+ Mark-Ups on eBay

Currently, there are many iPhone 4 devices available on the popular online auction website, eBay. These auction iPhone 4 devices are in most cases marked up in price 400% or more over those purchased on a 2 year contract with AT&T.

The iPhone 4 is in extremely high demand. 600,000 units were pre-ordered in just one day, and only a few devices are expected to be available in store on launch day. With some people receiving their iPhone 4 a day earlier than expected, iPhone 4s are beginning to show up on eBay. As is the case for any popular consumer electronics that are released in limited quantity, many of the iPhone 4s on eBay are marked up nearly 400% or more. With Buy It Now prices over $1,000, it truly is a seller’s market. The average bidding for an iPhone 4 is near $750.

These prices may sound shocking, but when compared to Apple’s unsubsidized price, it really is not insanely unreasonable. Currently, Apple’s price for a new iPhone 4 without a new two-year contract from AT&T is $599 (16GB) and $699 (32GB) (found in the fine print at the bottom).

If you are not eligible for an upgrade anytime soon, plan on buying an iPhone 4 anyways, and have to be one of the first ones to have the new iPhone, eBay is not a terrible option. Just plan on paying considerably more than you would if you were to get one from Apple or AT&T.

Alternatively, with the many AT&T subscribers who are upgrading from their old iPhone 3GS to the new iPhone 4, there are lots of deals to be had on the old iPhone 3GS. Currently, Apple is still selling the 8GB iPhone 3GS for $99 with new two-year contract. For an unsubsidized iPhone 3GS, Apple charges $499. So, if you are not eligible for an upgrade of your AT&T phone yet, you can bid on an unsubsidized iPhone 3GS on eBay for anywhere from $125-$299. If you really do some searching, you could come across a great deal, at least for an iPhone 3GS anyways.

Via InformationWeek