iphone

David Flashner thought he had it wired: Buy two iPhones last Friday when they first went on sale, keep one and sell the other at a profit so big it would pay for most of the first one.

Flashner wasted no time. He began advertising the extra phone while still in line at an Apple store in Burlingame, Calif., south of San Francisco. During his 21-hour wait, he posted half a dozen ads to website Craigslist .com — with prices ranging from $800 to $1,200 — and waited for the calls to come in.

But no calls came because consumers expect that stores will soon have phones in stock. He continued to advertise the extra phone through the weekend, and ended up with just one call, which went nowhere. On Wednesday, he returned the phone.

Flashner, 25, who manages an audio-visual equipment rental company, is not the only would-be iPhone reseller whose plan failed to follow the script. "I haven't heard of a single person who sold one," he said.

Across the nation, people looking to make a quick and easy profit bought one, two or as many phones as they could by recruiting friends to stand in line with them. Many of them were the first to get in line, camping overnight outside the stores. But now they are finding that the iPhone is much more like a Harry Potter book than a hard-to-find Wii video game machine: a great thing to be one of the first to own, but not high in resale value because supply is not constrained.

Last Friday, just after the first iPhones were sold, thousands of listings showed up on eBay and Craigslist, with prices of $1,000 for the 8-gigabyte phone, a $400 markup. Some bold sellers were asking $2,000. But as it became clear that supply was meeting demand, they found themselves stuck. Few of the phones have sold for more than $700, which after sales tax, is not a remarkable profit margin.

Corey Spring, a columnist at newsvine.com who analyzed eBay auctions, estimated that a significant number of sellers "were only making their money back, even closing at a loss." Most Apple stores in the United States have no phones available, but the most-determined customers seem to have been able to buy phones. Few people seem willing to pay even $100 over the retail price.

Some frustrated resellers say they will keep trying, then return their extra phones within the 14-day return period.

Demand for the phone was remarkably strong in the first days. Analysts estimate that Apple and AT&T stores have sold around 500,000 phones so far. One analyst ventured a guess as high as 700,000. But Apple appears to have anticipated demand and contracted with manufacturers in Asia to build far more. Apple has said it expects to sell as many as 10 million phones by the end of 2008.

Over the last few weeks, Apple stirred a great deal of speculation about inventory levels by shrouding them in secrecy. As a result, resellers decided to take a chance. The company declined to comment on the rush to resell the phones or on the status of iPhone inventories.