Apple Inc. (AAPL) has started an iPhone trade-in program letting owners sell older handsets back to the company in exchange for credit toward a new model.
Apple’s U.S. retail stores are now accepting devices, said Amy Bessette, a spokeswoman for Apple. The initiative is starting just before the next iPhone’s debut on Sept. 10.
While Gazelle Inc. and wireless carriers such as Verizon Wireless and ATT Inc. (T) already buy used handsets, this is the first program run by the iPhone maker. By buying old phones, they’re aiming to spur new device sales by helping cover the cost of buying the latest sma rtphone. Apple is teaming up with Brightstar Corp., a mobile-phone distributor, to run the operation, people with knowledge of the plans said in June.
“IPhones hold great value so Apple Retail Stores are launching a new program to assist customers who wish to bring in their previous-generation iPhone for reuse or recycling,†Bessette said. “In addition to helping support the environment, customers will be able to receive a credit for their returned phone that they can use toward the purchase of a new iPhone.â€
The money paid back depends on the condition of the phone. An iPhone 5 with 64 gigabytes of memory can fetch $350 through Gazelle’s website, while an iPhone 3GS may receive only $10. The most that any iPhone will fetch at an Apple Store is $280.
Without a subsidy from a carrier, an iPhone 5 costs $649 to $849 depending on the amount of memory, compared with $199 to $399 with a wireless contract.
Used iPhones collected through th ese programs are often refurbished and used as replacements for ones that break, or resold in emerging markets.
To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net
To contact the editor responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net
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Apple Begins IPhone Trade-In Program for Money Toward New Models
David Paul Morris/Bloomberg
Customers look over an Apple Inc. iPhone 5 at a store in San Francisco.
Customers look over an Apple Inc. iPhone 5 at a store in San Francisco. Photographer: David Paul Morris/Bloomberg
Enlarge image
Apple Begins IPhone Trade-In Program for Money Toward New Models
Craig Warga/Bloomberg
By buying old phones, Apple Inc. is aiming to spur new device sales by helping cover the cost of buying the latest smartphone.
By buying old phones, Apple Inc. is aiming to spur new device sales by helping cover the cost of buying the latest smartphone. Photographer: Craig Warga/Bloomberg
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