If you have updated your old iPhone you have another decision to make, what to do with your old one.

Your old iPhone still works; it’s just that you have moved your number onto your new one. You have an iPhone but no service.

What is it Worth?

An iPhone 3GS sells for about $200 or £200 on Amazon, slightly less on eBay. You can get those prices even where the case has cosmetic scratches, so your phone is much more than a lump of worthless plastic.

This is one thing about the iPhone. Depreciation is much less than with other phones because people are always willing to pay for the Apple ™ name, even if the phone has been used every day for three years.

Your phone cost you $600 (or £550 if you are UK based). You might not have forked out that amount up-front because you took out a contract, but each one of your monthly payments included a hefty amount towards the retail price.

Pass it On

If you have a child who will appreciate an older model iPhone then passing it on to him or her is a great idea. The downside here is the probability that the child will lose the phone or break it. If you can sell your old phone for $200 then it might make more sense to buy a £100 smart phone for your child.

If your partner or parent would appreciate a two or three year old iPhone then passing it o to that person makes more sense than passing it onto a child.

Teenagers who are fully aware of the status implications of different varieties of the iPhone will usually turn up their noses at anything less that the latest model. If you force it on one then you can guarantee it will be dropped and broken within the week. Rather than pass on your used iPhone to a teenager it is better to cut your losses, sell it and buy the phone that he or she really wants.

Getting Service to Your old iPhone

You can buy a Pay as You Go (PAYG) sim card for your phone on any network. If you have had your phone and used it for two years then your network will give you an unlock code, after they try to persuade you out of moving networks of course.

Pay as You Go is not the cheapest way to use a phone though because each text, minute or data Mb costs you more than it would on a contract.

Contract prices are so high because they include payments towards the cost of your phone, if you no longer need a phone but still need the texts, minutes and data then a Sim-Only contract is what you need. This is the cheapest way to set up an old iPhone again.

Every mobile phone network offers sim-only monthly package deals. The included data is much higher than with the usual contract phone deals. Similarly a sim-only contract usually includes a lot more texts and call minutes. Even a basic contract will provide plenty for anyone who is not downloading video and playing online games on their phone.

Make sure that the deal you go for has an adequate included data allowance. You need at least 2Gb per month to use your phone normally, so if you only have 250Mb included then you are going to have to pay massive excess data usage charges every month.

Keep Your Old Phone

Of course you could just keep your old phone and switch to a sim only package yourself. After all why get rid of a phone that has everything you have used for the past year already on it just for a few extra bells and whistles on a new iPhone?