iPhone 3G on eBay why so expensive

I am amazed to see how even a broken or water damaged iPhone is selling for over $200 on ebay.

Who is buying these and why are they so expensive?
Are they being fixed and sent to other countries like the Audi's were being sent to China in the early 90's?

your guess is as good as mine...i was wondering the same thing

The economics just doesn't make sense to me.

Ebay water damage/broken iPhone 3G 8GB: ~$300
Parts to fix: ~$ 70

Who sell at this price after fixing and how much profit is there? Is the profit worth the effort?

Some people would rather pay a higher price so they don't have to sign a new two year contract.

True, but you need the data plan to make all the features of the iphone work.

picflight said:

True, but you need the data plan to make all the features of the iphone work.

Click to expand...

That is true but having the data plan does not extend the contract.

Plus in other countries (where all providers are GSM) data plans from non-official carriers are often a lot less expensive.

This is incredible, look at this one, a broken iPhone for $618!!

Apple iPhone 3GS 32GB (AT&T), Broken LCD, Great Buy, NR - eBay (item 300348692866 end time Sep-22-09 06:53:51 PDT)

Well it is a 32GB 3Gs

Supply and demand.the iPhone is hot right now and people, want it. I talked to a guy who ships them to Venezuela where he says he gets $500 and up for 3G iphones. Even if you pay $300 and sell it for $500 it's still good money.

apple will replace water dmg iphones for a fee of 199.

so if you bought one for 200 and bring it into the apple store provided you either have att or someone with att sim, drop 199 and they will give u a spanking new iphone,