When I decided to upgrade my two-year old iPhone 3GS 16GB to the new iPhone 4S, I had to decide out what to do with my old phone. I could:

  • Use it essentially as an iPod Touch (no phone service)
  • Sell it

Unfortunately, I can’t use it as a backup phone since I’m also switching carriers — AT&T to Verizon — and the 3GS model is not cross-carrier compatible.

I don’t really have a need for another iPod, so I decided to sell it on the used market. But what’s it worth? A quick check with Gazelle.com surprised me. Even after the upgraded iPhone 4S announcement and release, my 3GS phone is STILL worth $120 — which means my net cost for the two-year old phone was not the original price of $199 — but only $79!

With this experience, I decided to bump up my order to the mid-level iPhone 4S 32GB at $299. I believe it will have a similarly strong resale value two years from now.

Sold!

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