A few days back, rumors suggested that Apple would begin an iPhone trade-in program around the time of the release of the next-gen handsets. This strategy would increase sales of the device from the company’s own retail stores rather than partners.
Today, the rumor has become true, and the service has come into full effect. Now, customers will be able to trade their old devices in part-exchange for a brand new iPhone handset. Apple is expecting to see an increase in the percent of iPhones sold within Apple’s Retail Stores.
However, it is worth mentioning that the service was designed in a way in which users will be engaged with the Fruit Company for a longer period of time. In this way, the consumer who wants to trade it his old device will have to agree to a two-year contract as part of the “iPhone Reuse and Recycling Program”. This also means that whatever the current iPhone is deemed worth in credit can be used against your new contract.
Users who turn in their existing handsets will receive a gift card, which must be immediately used towards the purchase of a new iPhone. However, the gift card can not be used against the purchase of accessories or other Apple products. Users must use it exclusively for purchasing a new iPhone.
When purchasing a new device and activating it on a contract, the system will determine the old device’s trade-in value, which is usually dependent on multiple factors such as model, capacity, physical condition as the state of the screen, hardware buttons or any other physical/liquid damage.
As for the iPhone Reuse and Recycling Program, Apple is not responsible with determining the value of the handset. The Cupertino-based company collaborated with BrightStar, the recycling firm, so the firm does the price determination.
In order to see things clear, here is an example. A 16 GB AT&T unlocked iPhone 5 will get the owner $330, while a flawless 16 GB Verizon iPhone 4S will be estimated at $185. It is worth mentioning the fact that unlocked devices command even higher trade-in value. As a last value, the highest amount Apple will pay for a used iPhone is $280.
For those who are interested, Apple considers business customers eligible for the program. This will definitely help business customers to get the best value for their employed handsets while remaining in Apple’s ecosystem.
Through iPhone Trade-In Program, Apple is aiming to push for stronger performances from its retail stores, and the program is a part of a wider effort to increase general sales. So far, Apple’s partners continue to sell more iPhone units in physical stores than Apple does, and Apple’s CEO plans to change this.