Trade-in prices for iPhone 4 falling fast

Posted by Raven Lovecraft

Not that we didn't expect this, but the amount of money you'll get for your old iPhone 4 is dropping quickly ahead of the launch of the iPhone 4S.

A website called NextWorth, which allows consumers to sell their used electronics for cash, was offering $250 for an iPhone 4 at the beginning of October. Now, the price is $200 for the 16 GB model and $215 for 32 GB.

Another leader in this space, Gazelle, has posted the exact same drop from $250 to $200.

Trade-in sites like Gazelle reported spikes in iPhone 4 trade-ins over the last several weeks, but unfortunately many people who have an iPhone 4 can't trade it in until they get a replacement.

The iPhone 4S goes on sale on Friday, and by that time the iPhone 4 will be completely old news.

Nevertheless, there is sure to be an entirely brand new market for the iPhone 4 as soon as that day hits. Apple has found that budget-conscious consumers still long for an iPhone, which is why it continued to sell the iPhone 3GS long after the iPhone 4 was released.

AT&T also noted an advantage in the market of "cheap iPhones," since it was the only carrier authorized for use with the iPhone 3GS, thus it held a monopoly on the industry for those without a lot of money who still wanted an iPhone.

Now, though, with so many iPhones available and multiple carriers on board offering different models, the market is poised to change over the next year.