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When Apple, Inc. (NASDAQ: AAPL) released the iPhone 3G back in July, little did it know (most likely) that the device would have issues worldwide connecting to 3G networks, causing consumer frustration on a level we've rarely seen with any Apple product. Well, some consumers have apparently given up and they're moving back to the older, slower, original iPhone, which is causing a cottage industry to spring up around the older device.NextWorth.com is charging $200 to $300 for a used iPhone (the non-3G kind), which is more than the price of the newer, sleeker and faster iPhone 3G. Why? There's demand -- and lots of it. Some customers don't want to be shackled to AT&T, Inc. (NYSE: T), the exclusive carrier for the iPhone and iPhone 3G in the U.S., as the original iPhone can be unlocked very easily using software tools found all over the internet. Once unlocked, the original iPhone can be used at any WiFi hotspot. There are no 3G connectivity issues either.
Does Apple have a problem now that the older, discontinued iPhone is still in hot demand? No. People using iPhones, new or old, reinforces the brand among other things, and Apple still made the original sale after all. If there is any loser here, it's AT&T. The largest wireless carrier in the U.S. still has the smallest nationwide 3G wireless network compared to its competitors. Launching a product with the magnitude of the iPhone 3G was just asking for problems given AT&T's network, and some informed customers don't want AT&T at all.
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Reader Comments (Page 1 of 1)
9-04-2008 @ 12:22PM
TX CHL Instructor said...
The Nextworth.com site appears to be down. Is the link correct?
9-04-2008 @ 12:56PM
beanspants said...
How is at&t the loser here? So a few toolboxes want to switch out a 3G capable phone for a 2G-only phone (to T-Mobile) who has an even more limited 3G presence? yeah, it's ok with at&t if people are dumb.
that's like switching to walking because sometimes you will be stuck in traffic and not moving at all.
9-04-2008 @ 3:44PM
Brian said...
The demand for the original iPhone is only because it can be unlocked easily. All 3G phones loose the 3G network, you just don't notice it on any other phone because the other phones are (by comparison ot iPhone) incapable of using the bandwidth. This is why Apple very wisely didn't include it in the original model--it wasn't needed. Wifi capability (new feature on phones at the time, but not being copied like mad as all the other manufacturers copy Apple (yawn, when have we seen THIS before?) relentlessly. Wifi is faster than 3G. The original model works no better than the new, cheaper and more capable one, but the original iPhone can be unlocked and used on any network. This is what is causing it to sell for far more than anyone paid for it originally. What other device has that going for it? Macs resale for many times what a comparable PC does, but not more than it cost originally (non including service contract costs of course).
9-05-2008 @ 10:39AM
Min said...
In the UK, similar to AT&T, mobile operators (O2 / T-Mobile) experienced some losses with the first edition of iphone. As a result, the market has forced the industry to seek new revenue streams. It went very well. In my office, many people bought iphone and none of them are using the first version.
Reference: Is the New Apple iPhone Launch Part of Profound Changes in the Mobile Market?
http://www.reportbuyer.com/blog/is-the-new-apple-iphone-launch-part-of-profound-changes-in-the-mobile-market/