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Trading up to a new iPhone

The 3G iPhone is (apparently) on its way. 1st gen iPhones are being remaindered and are otherwise thin on the ground. TUAW reader Joël Huxtable writes to ask "what will we do with the old iPhone?" Well, Joel, we're glad you asked. Here are a few thoughts about what you can do with that old phone.

eBay it. The iPhone may soon be previous gen but it still has pretty good market value -- especially if you're willing to take the risk of auctioning it off to overseas clients. I expect to see some enterprising people realize this soon and start a buyback service specifically intended to put blocks of unlocked previous-generation iPhones together for sale overseas in countries without official iPhone support.

iPod it. Once you've pwned your iPhone, it becomes not only a perfectly good iPod touch but one with built-in speakers and a microphone. You don't need an active AT&T account to keep using that iPhone as one of the best iPods ever built.

Kid it. I don't know about your kids but mine are constantly after me to use the iPhone. It offers a perfectly portable sub-laptop solution for hooking into the Internet at Wi-Fi hotspots. It takes a lot of the burden off our main computer and allows my kids to watch endless Hannah Montana/Miley Cyrus clips.

I'm sure there are plenty of other uses as well in addition to selling, re-purposing or sharing the iPhone. You can probably set it up as a SETI host or cryptography number cruncher. Got more ideas? Let us know about them in the comments.

Update: I am not now and have never been on an iPhone contract. I use prepaid (AT&T GoPhone). The rates are pretty stinky but with good WiFi and now VOIP, I'm not hurting for minutes. When I bought my new refurb 8GB, I swapped out the SIMs and then activated with iLiberty+. It's working fine--sends and receives calls and SMS. I did not activate through iTunes.

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