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Report: Apple to Start iPhone Trade-in Program

By - Source: Bloomberg | B 9 comments

Will Apple soon be willing to take your old iPhone off your hands?

Apple releases a brand new iPhone every single year. The issue is that they sometimes don't contain any significant upgrade. Worse still, sometimes they include features that really ought to have made it into the previous year's model. However, it seems Apple may have come up with a solution to appease users tired of feeling like their new iPhone is only ever a few months away from being out of date.

Bloomberg reports that Apple is reportedly planning a trade-in program that would run out of its retail stores. The news outlet cites people with knowledge of the plans that say Apple is partnering with phone distributor BrightStar to run the program. BrightStar already handles trade-ins for AT&T and T-Mobile.

The idea is to reduce the out-of-pocket cost to consumers while increasing phone sales. Under the new program, customers would upgrade to the iPhone 5 and relinquish their old iPhone to Apple. Though it will no doubt save customers money, the program, should it come to fruition, will also work towards brand loyalty and customer retention. People are less likely to move to another smartphone platform if they know that Apple will cut them a deal on the newest model of iPhone.

Neither Apple nor BrightStar would discuss the rumors with Bloomberg. If there's any truth to these reports, we expect we'll learn more once Apple has a new iPhone to launch, which could be as soon as next week, at WWDC in San Francisco.

Discuss
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  • 4 Hide
    bombebomb , June 7, 2013 12:41 PM
    Oh you got an Iphone 4S here is $50 trade in credit for an Iphone5
    Isheeple: Wonderful we're so grateful
  • -1 Hide
    NightLight , June 7, 2013 12:58 PM
    make that 10$, and they sell them on as refurbished or 3rd world
  • 2 Hide
    acadia11 , June 7, 2013 1:11 PM
    I know it doesn't significantly reduce the cost that's the problem.
  • 3 Hide
    vmem , June 7, 2013 1:19 PM
    you guys can mock it all you want, but it'll probably be a run-away success just like gamestop's game trade-in program
  • -2 Hide
    dalethepcman , June 7, 2013 1:20 PM
    Apple realizes they will be hemorrhaging customers like crazy with the HTC One, Samsung GS4, and Motorola X phones and needs to find a way to plug the wound. This might keep users tagging along for one more generation that were on the fence, but the sign is on the wall and clearly lit up.
    Iphone 6 and iOS 7 need to deliver in a big way, or customers will start flocking to newer better technologies.
    Once the customers start leaving, the developers start leaving. Once the developers start leaving, more customers leave, and so on, and so on, and so on. This is a difficult snowball to stop and I wish Apple the best of luck, but I don't think they are capable of stopping the momentum already put in place.
  • 0 Hide
    everlast66 , June 7, 2013 1:25 PM
    iPhones actually keep their price quite well, in the UK:
    new factory unlocked iphone 5 - £530
    second hand iphone 4S - £400
    second hand iphone 4 - £280
    Copmared with the Samsung S3 second hand £280, came out around the time of the iphone 5 and was the same price new off-contract
  • 1 Hide
    game junky , June 7, 2013 1:58 PM
    I am sure some consumers who are ignorant of the market value of their devices will take advantage of this - craigslist and ebay aren't exactly enjoyable to list on.
    For me, I will always opt for whatever option gets me the most cash in hand...
  • 1 Hide
    tbq , June 7, 2013 5:27 PM
    By having a trade-in program Apple effectively reduces the supply of used iphones on the market, which will drive up the prices. When the cost of buying a used iphone gets closer to the price of a new one, the new one looks more attractive to the buyer. It's more about increasing their sales revenues than any sort of goodwill gesture of customer service.
  • 0 Hide
    JOSHSKORN , June 7, 2013 7:06 PM
    Yeah...that won't last.