You can still break even on iPhone 3GS upgrade

Your mileage may vary, but you should be able to sell your iPhone 3G for the same price as a refurbished 3GS.

So it has come to this: My iPhone 3G is a year old and out of warranty. Its battery ain't what it used to be. And, heavens, does it seem slow sometimes.

Needless to say, I've been eyeballing a 3GS for some time, but I still don't qualify for a price break on an upgrade--not until April, 2010, according to AT&T.

So if I want to replace my 16GB 3G with a 32GB 3GS, it'll cost me $499. It'll be a warm January day in Michigan before I spend that kind of money on a phone.

Ah, but there's another option. I can get a refurbished 32GB 3GS for $349 (provided I sign on for another two years with AT&T, of course). That's a little more reasonable, and here's the kicker: Guess what a used iPhone 3G will fetch on eBay these days?

You guessed it: right around $350. (Sometimes even more.) That amazes me right down to my sneakers, but I guess people are willing to pay handsomely for an iPhone that's free and clear of AT&T and ready for jailbreaking.

So--and this is what I'm telling my wife--I'd be crazy not to do this. After all, I do write about the iPhone for a living. I should have the latest model, right? Right? Honey, put down the rolling pin!

I'm kidding--I do most of the baking in this house. But I'm not kidding when I say I can't see any downside to making this move. Even if my old crank-start 3G brought in only $300 on eBay, I consider $50 a perfectly reasonable upgrade expenditure.

Obviously your mileage may vary, like if you're moving from an original iPhone or looking at a 3GS with 16GB instead of 32GB. Heck, you might be able to come out ahead on the transaction.

Thoughts? Discuss.