Theoretical upper limit of price for unlocked iPhone?

[rudy45]

I am looking for an iPhone that I can later unlock and use with other carriers and plans. Let's take, for example, iPhone 3GS, 32 GB.

Am I missing something in my analysis? Apple sells this 3GS for $299, provided you commit to a two year plan. If you cancel before that time, you pay a fee of $175.

I have looked on the internet and see unlocking software for as little as $30.

Given these facts, why then would anyone want to pay more than $299+$175+$30=$505 for an unlocked iPhone 3GS? I see prices of $600 and above on eBay. Do these prices make sense? Isn't less to simply "buy" the phone from ATT, take the cancellation fee penalty and unlock the phone onesself?

What is anyone's experience with using unlocking software? What do you recommend? Thanks.

[pnh102]

If you want fast data service in the USA then there is zero point in unlocking the iPhone. T-Mobile, the only other GSM-based provided in the USA, uses different frequency bands for its data than AT&T, so the best you will be able to do with data on an unlocked iPhone, presumably with T-Mobile, is EDGE data.

[rudy45]

Hi, do I understand you correctly? I am hearing from that if I unlock the iPhone and then switch to T-Mobile, I will have voice service and data service. However, the data service will be slower than I would get had I stayed with ATT? thanks.

[mnehring]

why then would anyone want to pay more than $299+$175+$30=$505 for an unlocked iPhone 3GS?

Demand. To someone selling an unlocked iPhone, you are listing out their wholesale cost. Of course, they will want to make a profit. On top of that, there seems to be a market for these and as there aren't a lot available, expect a fair cost to be about 25% to 50% more than that. I have an unlocked first generation I use as an iPod from back when Apple sold them refurbished in their store. If they ever pick that practice up, expect the prices to drop drastically.

[RangerM]

It would appear that a Nissan Z car would be the upper limit.

http://www.cultofmac.com/trade-kevin-poulsens-classic-datsun-z-car-for-an-unlocked-iphone/1156

[pyx]

If you are totally committed to the iPhone, then pursue the iPhone.
However, if you are considering reasonable alternatives, there is the Motorola Droid from Verizon at this URL .

I do not work for any phone company or for Motorola.

[pnh102]

Hi, do I understand you correctly? I am hearing from that if I unlock the iPhone and then switch to T-Mobile, I will have voice service and data service. However, the data service will be slower than I would get had I stayed with ATT? thanks.

That is correct. AT&T's 3G service operates in the 2100MHz range and T-Mobile's 3G service in the USA operates in the 1700MHz range. The 3G radio in the iPhone is incapable of working in the 1700MHz range.

However, both AT&T and T-Mobile use the same frequencies for EDGE and you should be able to get by with EDGE service from T-Mobile as a result.

[OldDeckHand]

I’m so glad you posted this. I’ve been contemplating this very same thing. I’d like to get an iPhone, but the service for AT&T is so horrific, I’m hesitant. I don’t know much about this “unlocked” option, so I’m eager to read what’s posted.

[kickme]

Google “jail break” iphone for free software to ‘unlock’ an iphone.... there appears to be some vulnerability to viruses on jailbreak phones, although it is regional and minimal...

[garyhope]

Funny that your AT&T service is so horrific. In the DFW, Tx. area and out in W. Texas, I couldn’t get Verizon to work worth a darn despite Consumer Reports saying that Verizon worked well here. I switched back to AT&T and my service in the metro area and out in the boonies improved dramatically. Go figure.

[OldDeckHand]

"Funny that your AT&T service is so horrific."

Yep, Central Ohio has been horrible for us. We couldn't get a signal unless we stood right next to the window of our home. We switched to T-Mobile, and we couldn't be happier.

[appeal2]

If you get a mywifi from Verizon, skype for the iphone, you can use the iPhone on the verizon network with skype for about 60 bucks a month plus the skype fees. You will get better coverage on the Verizon network as the iPhone has completely killed the AT&T cell network. Not sure if the Droid will have the same affect on Verizon, but don’t be surprised.

[ReagansShinyHair]

I heard that if you have an iphone like that, it might turn into a brick when apple sends out another update.

[CIBvet]

Thanks for the post rudy ... I too am thinking of a move to the iPhone, but ATT doesn't allow 'Tethering' at this point. I guess they're still fighting w/ Apple over pennies.

I want internet access for my laptop. I understand an iPhone 'jailbrkn' will work on other carriers.

Anybody have experience with this?

[kickme]

true if you update with the new Apple software....

[rudy45]

Thanks, but I thought iPhone, being GSM, is incompatible with Verizon and its CDMA network?

[ShadowAce]

Why not just get a MyTouch, or a G1? Why are you so set on the iPhone?

[2 Kool 2 Be 4-Gotten]

In that scenario the myfi would be speaking CDMA and the iphone speaking wifi.