IPhone Aftermarket Emerges as Updates Loom

Yearning for the then iPhone however unsure what to do with your current, shortly-to-be-outdated model? Not to worry -- plenty of gadget buyback options are available to give you enough cash to pay an early termination fee or snatch up that new, shiny iPhone you desire.

How does that work?

How does that work? Because phones are sold for a subsidized price with a contract, users can as a rule make some money by selling their phone to people who need a replacement device or don't want to sign a new contract. If you sell by the way, you can maximize your return and, in part, make more than enough cash to buy a new iPhone on contract.

PCWorld took a look at six online options to see how much a used iPhone 4 or 3GS might fetch and which service has the best offer for those looking to trade up this fall.

Keep in mind, you can probably get a little more cash by selling your used iPhone on Craigslist or eBay, nevertheless these trade-in programs are convenient and partly will allow you to get a price quote locked down for a month.

The most cash across the board

eBay Instant Sale offered the most cash across the board. Then of testing I got quotes of $308 for a 16GB iPhone 4; $326 for a 32GB iPhone 4; $168 for a 16GB 3GS and $172 for a 32GB 3GS. The downside is that you must ship your device to eBay Instant within ten days of getting the quote and it only pays via PayPal. Other services give quotes that are good for a longer period and offer more payment options, including: checks and store gift cards.

Shorter quote lock-in times may force users to trade in an old phone earlier getting a new one or risk getting a reevaluated price for holding on to the phone. If you're considering trading in your old iPhone, you should weigh the quote time against the price to figure out which service will work best for your particular needs.

Apple's typical once-a-year release schedule and limited product line makes its products a hot trade-in item compared to other devices just as Android phones or computers, Scarsella says.

The iPhone is our number one product

"The iPhone is our number one product. Number two is probably the iPad," he says. "We got about 10,000 iPads when iPad 2 was announced." He estimates that Gazelle got as many as 3000 iPad trade-ins in the first few days following the iPad 2 announcement.

Scarsella says Gazelle is gearing up for the expected announcement of a new iPhone and iPad in the fall and expects a large amount of older devices to be traded in.