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Whither the 1.0 iPhone resale?

If you managed to find a quiet dark place during the keynote, you might have heard several tens of thousands of small cries in the distance. What were those cries? They were the sounds of iPhone resale values hitting near zero. With new 3G models selling at rock bottom prices and iPhone sales rolling out around the world, the poor iPhone 1.0 has gone the way of most other outmoded technology.

Sure the iPhone 1.0 won't die right away. It is full 2.0 firmware compatible, and it is an absolutely terrific device. But I'd be surprised if the first generation units sold for much more than about a hundred bucks after today's announcements. With new 8GB going for $199 and 3G service available, many of today's iPhones are going to become tomorrow's high-end iPod touch units.

Instead of resale I predict that very soon now a lot of spouses and teenage children will be receiving their very first iPhones hand-me-downs. What do you think? Upgrade? Or stick with the iPhone as it is? Let us know in the comments.

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