iPhone: What To Do With An Old iPhone

iPhone: What To Do With An Old iPhone

SUMMARY

Steve Jobs announced the iPhone 4 on Monday June 7 at the World Wide Developers Conference. The cost is $199 for the 16GB model, and $299 for the 32GB.

But what to do with your “old” iPhone?

BACKGROUND

Consumer electronic equipment has a lifespan that can often be measured in centuries, but is made obsolete within 1-2 years by newer technology. So what are your options for that has-been tech toy?


OPTIONS

  • Toss in the trash. That is sure to raise the ire of the green-folk.
  • Give to someone else to use. Not a bad option. I sure wouldn’t rush out to give my kid a new $299 phone.
  • Sell the iPhone.
  • Donate to a charity. A tax deduction may be as good as cash.
  • Give to a recycler. And while you are at it, why not just send me whatever cash you have in your wallet.
  • Sell to a recycler. Now we are talking my language.


SELL THE IPHONE

If you know someone who covets your slightly-used precious, this would be the fastest and easiest way to sell your iPhone.

If you don’t mind dealing with endless lookie-loos, Craigslist is a very popular avenue to sell your iPhone. The major disadvantage is that you can only advertise locally. Of course, if you can find a buyer locally, it saves the hassle of shipping and insurance.

eBay is the mothership of iPhone sales. The bad news is there is plenty of competition for buyers. The good news is that it is easy to see what price will garner a quick sale. If you have never sold on eBay, I recommend purchasing Garage Sale for $35. It makes setting up an eBay account and placing an item for sale online just a few mouse clicks away. It is template-driven, so just choose the look you want, fill in the blanks, and it is done.


CASH FOR IPHONE RECYCLERS


There are a number of recyclers that will pay well for your iPhone. I have not personally used all of these vendors, so seller beware. However, it is safe to say that when they ask for the condition of your iPhone, you probably think it is in far better shape than their appraisers will record, which may reduce the quote you were initially promised.

For comparison, I received quotes for two iPhones, a very good condition iPhone 3GS 32GB and a very good condition iPhone 2G 4GB (the latest/greatest model and the first model released). Quotes are all from Tuesday, June 8, 2010. Obviously, with each passing day the value of both phones may go down, possibly substantially.

Cash For iPhones & iPods. http://www.cashforiphones.com
  • Quoted $400 for an iPhone 3GS 32GB
  • Quoted $70 for an iPhone 2G 4GB
  • Quote is valid for 7 days from receiving their shipping container
  • Free shipping
  • Pays one day after receiving iPhone
  • Their quote is not based on the physical appearance of your iPhone, only working condition

Gazelle.
http://www.gazelle.com
  • Quoted $272 for an iPhone 3GS 32GB
  • Quoted $69 for an iPhone 2G 4GB
  • Quote is valid for 30 days from date of receiving the quote
  • Free shipping
  • Pays within 2 weeks after receiving iPhone
  • Quote is based on physical appearance and working condition
  • Offers a referral program where you received payment for having referrals sell their equipment to Gazelle

NextWorth
. http://www.nextworth.com
  • Quoted $299 for an iPhone 3GS 32GB
  • Quoted $60 for an iPhone 2G 4GB
  • Quote is valid for 21 days from date of receiving the quote
  • Free shipping
  • Pays within 2 weeks after receiving iPhone
  • Quote is based on physical appearance and working condition

Buy My Tronics.
http://www.buymytronics.com
  • Quoted $280 for an iPhone 3GS 32GB
  • Quoted $74 for an iPhone 2G 4GB
  • Quote is valid for 14 days from date of receiving the quote
  • Free shipping
  • Pays within 1 week after receiving iPhone
  • Quote is based on physical appearance and working condition


DONATE TO A 501 (C) (3)


It would be unusual to receive the amount promised in a quote from a recycler, but I’ve had clients get very close, and some only received about half. Again, your perspective on the condition of your iPhone may not match with that of the buyer.

If you don’t want to risk selling, you also have the option of giving your phone to a 501 (C) (3) charitable organization and take the tax deduction. Discuss this option with your CPA, but do get a quote from one of the recycling vendors so that you have some evidence as to the “real” value of the iPhone for use on your taxes.


BEFORE YOU DO ANYTHING WITH YOUR OLD IPHONE

Make certain that all of your data is removed from the iPhone:
1. Select the Settings icon on the iPhone.
2. Select General.
3. Scroll to the bottom of the screen, then select Reset.
4. Select Erase All Content and Settings.
5. Select Erase iPhone for the following two warning messages.
6. Remove your SIM card.
7. It may take an hour or more to fully erase your iPhone. Do not interrupt the erase process or power off your iPhone until it is complete.