What are retail stores doing with used iPhone 4 phones?

[sethk]

I couldn't help but notice that the Verizon iPhone 4 has accelerated a trend where tons of stores are now advertising that they will accept your used iPhone 4 either for cash or a discount on a new phone or any other merchandise.

Here's a link to an article that summarizes trade in values, etc.:
http://gizmodo.com/#!5754929/the-verizon-iphone-4-switch-how-badly-will-it-hurt-my-wallet
In addition to the table it lists, gazelle, ebay instant sale and similar stores are offering even more than most retail stores.

The question I have is what is happening to all these used iPhones? I don't see a ton of places selling used iPhones... where do they go? Obviously there's money to be made here, but I'm having a hard time seeing where the big retail market for used iPhones is.

 

[Abit667]

iPhones usually sell really well on ebay for some reason. I remember when I sold my 3GS there were auctions ending over retail for used phones, and this was shortly before the iPhone 4 was supposed to come out.

 

[sethk]

I thought the same thing, except a) There isn't a huge glut of iPhone 4 devices on ebay, the supply is pretty steady (except for a recent jump explained away by the Verizon iPhone launch), otherwise we'd see a drop in prices and b) I think it's fairly certain that Target, Wal-Mart, Best Buy are not buying a bunch of iPhones to sell them on ebay. I wonder if they will start a retail shelf in their stores selling used phones? Maybe startup a mobile equivalent to GameStop? Perhaps I should grab the MobileStop® domain for myself... (just checked, it's taken).

 

[The Slayer]

Some retailers will sell used and refurbished iPhones. They could send them to apple for them to fix/clean then they can turn around and sell it as a refurbished iPhone or just flat out sell it as a used iPhone.

 

[sethk]

I've never seen used / refurb iPhones at retail, do you know some places that sell them?