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Home>UPDATE: How to get Apple's new iPhone for half price

UPDATE: How to get Apple's new iPhone for half price

UPDATE: How to get Apple's new iPhone for half price

09/17/2017

By Quentin Fottrell, MarketWatch

Target, cellphone carriers, eBay and other resale sites all offer deals to those who want to upgrade

It's "iPhoneapalooza 8" time.

Apple (AAPL) unveiled the 10th-anniversary iPhone Tuesday (http://blogs.marketwatch.com/thetell/2017/09/12/apple-event-expected-to-include-redesigned-iphone-on-tenth-anniversary-live-blog/). Once again, resale sites have reported a surge in trade-ins of old iPhones ahead of the announcement, but they expect trade-in prices to drop in the days after the big event. For now, though, consumers can still lock in high enough prices to earn 50% back on the cost of the new iPhone 8 by trading in their old gadget and upgrading to a new phone.

The market has become crowded for old phones in 2017, however. In previous years, it was possible to cover the entire cost by selling an iPhone that was over two years old. The 4.7-inch iPhone 8, depending on the carrier, will cost around $34.50 a month for 24 months for a 64-gigabyte version or $699 outright. The 5.5-inch iPhone 8 Plus model will cost around $39.50 per month or $799 outright for 64GB. (The 5.8-inch iPhone X will start at $999.)

With most trade-in offers, it's possible to sell an old iPhone to a resale site or online retailer for half the cost of the new phone, although you will need to sign a two-year contract.

The resale market is less lucrative this year and, as such, cellphone carriers may not be under as much pressure to offer deals to those who want to upgrade. "We believe it's unlikely that promotions will top last year's levels and they could even be less generous," Walt Piecyk, analyst at BTIG Research, said in a research note (http://fortune.com/2017/09/07/iphone-8-deals-wireless/). "The key swing factor could be T-Mobile (TMUS), as AT&T (T) and Verizon (VZ) have largely been ignoring Sprint's promotions."

The resale market became more lucrative for consumers with the added competition in recent years with cellphone carriers entering the fray. On Friday, Target (TGT) will launch pre-orders (https://9to5toys.com/2017/09/14/target-iphone-8-plus-pre-order/) for the latest iPhone 8 and 8 Plus with a $200 credit for an iPhone 6.

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