The same day that the iPad was announced, i went out and bought an iPhone 4.
I know what you are thinking, “Why would you do that? You know the iPhone 5 is just around the corner. Now you cannot upgrade. What are you thinking?”
I bought an iPhone 4 because of the market for used iPhones.
I, like many, have two phone lines. My line was up for an upgrade, and my wife’s line will be ready in just a few months. She does not care about her phone. When I upgraded I sold my iPhone 3GS for over $300. The 3Gs would drop in value when the iPhone 5 was announced, so I got top dollar by selling now. I cleared about $100 after everything was done. (Yes, I know I will spend more than that in a contract with AT&T, but I would spend that anyway.)
Once my wife’s line is ready to upgrade we can do some wheeling. I will get another basic phone for less than $100 with no contract, so she can get an upgrade, too. Then I will use her hardware discount to upgrade to the iPhone 5. Then sell my iPhone 4. Right now they are going for well over $400 without contract. I estimate they will still be hitting over $350 after the iPhone 5 comes out.
I should clear at least $50, when it’s all done, and both my wife and I will have new phones. If you can brave the world of eBay to sell your iPhones, you can fund your upgrades to the latest hardware.