selling broken iPhone

Alright so my dad recently had a clumsy moment and dropped his one month old iphone5. I think it goes without saying the screen shattered. Anyway he decided he didn't like the iPhone and so he bought a lumia. Now I'm selling the broken iPhone online for him and I checked eBay this morning and saw that people had already made bids up to $405 and there's still 6 hours left. What in gods name are these people doing with them? Doesn't a brand new one cost around $600 and to fix them it cost around $200. How could they possibly be turning a profit on them? PS as of yet I have not seen third parties fixing iPhone 5 screens for cheap