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Apple Looking to Boost iPhone Sales With New Retail Store Trade-In Program

Thursday June 6, 2013 11:16 am PDT by Eric Slivka
iphone_5_lteBloomberg reports that Apple will for the first time begin accepting trade-ins on iPhones in its retail stores, encouraging users to upgrade to the latest models and seeking to boost sales. Apple will be partnering with recycling firm Brightstar to offer the program.
Used iPhones collected in the U.S. will only be resold in emerging markets, where Apple’s share is lower and demand for cheap devices is greater, said one of the people. That way, the resale of Apple’s older models won’t cannibalize iPhone 5 sales in the U.S., the person said.
Since 2011, Apple has partnered with third-party firm PowerON in the United States to offer Apple gift cards to users seeking to recycle their used iOS devices through the company's website, moving last year to expand the program to other countries where it has offered cash back. With the new program, the trade-in program will expand to Apple's popular retail stores.
The new trade-in program with BrightStar will only be available at Apple’s retail outlets, letting consumers receive payments instantly and avoiding the hassle of shipping their older gadgets, the people said.
Apple's web-based recycling and trade-in programs have so far been relatively hidden away on the company's site, resulting in low consumer awareness. The new retail store effort is, however, likely to make a significant difference in trade-in usage, appealing to consumers looking for hassle-free credit toward new devices.

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[ 110 comments ]


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Rocko1
68 months ago
You craigsist people crack me up. OF COURSE you can get more on craigslist, go do it. It's like the people coming to a pawn shop and telling the owner 'I can get XXX amount more selling it on ebay!". No crap, go do it. You brought the phone to me, I didn't call you. This is my offer, if you don't like it or are offended, leave. Some people don't have the time or inclination to sell to people in parking lots, they will take a hit and save themselves the hassle. Now quit paying full retail for underwear and go to Salvation Army....
Rating: 14 Votes
Avatar
bbeagle
68 months ago

$199 for a 5???

I can get a lot more on Craigslist.


Yes, you can.

But from a typical consumer's standpoint, this is what they see:

Paid $199 for an iPhone 5 in 2012.
not eligible for an iPhone 5S upgrade, but I want one....
The upgrade fee is $399 from AT&T/Verizon...
Apple will give me $199 to trade in my iPhone 5 I won't use...
(I've never heard of that Craigslist thing... seems too complicated...I might get ripped off...and it will take time and effort...I can do this Apple thing right here, right now, and get a new phone NOW)
Hmmm.... now only $200 for an iPhone 5S after trading my iPhone 5 in...
same price as getting the iPhone 5!
Looks like a good deal, I'll do it!
Rating: 14 Votes
Avatar
ghostface147
68 months ago

$199 for iPhone 5.
$149 for iPhone 4S.
$99 for iPhone 4.
$49 for iPhone 3GS.


Damn I'd get way more money on craigslist.
Rating: 11 Votes
Avatar
Orlandoech
68 months ago

Damn I'd get way more money on craigslist.


Exactly. Apple or any business doesn't understand this and tries to seek the biggest margins. The only people would trade-in are completely oblivious people.
Rating: 11 Votes
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iDemiurge
68 months ago
Hand your old iPhone in and get a free bumper for your new one!

Or maybe it will be better than this. Who knows? Apple fans are always hopeful!
Rating: 8 Votes
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unlimitedx
68 months ago

Eh. This is interesting but I would have to see the numbers. I've had great luck with selling my pervious iPhone's on craigslist.


there's no hope it will be comparable to craigslist. direct sales will always trump resale thru a 3rd party! this will be targeted to folks who want convenience, avoid hassle of craigslist, in exchange for lower $$
Rating: 8 Votes
Avatar
ghostface147
68 months ago

Eh. This is interesting but I would have to see the numbers. I've had great luck with selling my pervious iPhone's on craigslist.


Those damn pervy phones I tell you!
Rating: 7 Votes
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Brett.F
68 months ago

Exactly. Apple or any business doesn't understand this and tries to seek the biggest margins. The only people would trade-in are completely oblivious people.


Or people that don't need the money or the added hassle of selling your phone on ebay or craigslist. Instead you just bring it with you when you buy your new phone.
Rating: 6 Votes
Avatar
Small White Car
68 months ago

You craigsist people crack me up. OF COURSE you can get more on craigslist, go do it. It's like the people coming to a pawn shop and telling the owner 'I can get XXX amount more selling it on ebay!". No crap, go do it. You brought the phone to me, I didn't call you. This is my offer, if you don't like it or are offended, leave. Some people don't have the time or inclination to sell to people in parking lots, they will take a hit and save themselves the hassle. Now quit paying full retail for underwear and go to Salvation Army....


THANK YOU

Remember how iTunes got popular? It was because it was easier than piracy despite costing $1 per song more! Convenience is worth money to people. Not all people, obviously, but to some. It's good to have options.

Even knowing I could get more on Craigslist I'd still consider this trade-in. I'm sick of having to respond to a dozen scammers for every legitimate offer I get. (And then it takes 3 or 4 legitimate offers before I find one who didn't buy something else first. It's a lot of work.)
Rating: 6 Votes
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TallManNY
68 months ago

or lazy.


Or rich.

I'm okay with doing ebay as I'm somewhat tech savy. But if I can just hand over a phone to Apple, feel secure that they will properly wipe it, and walk out saving $100 as opposed to selling the same phone for $200 but having to create my ebay ad, wipe my phone, monitor the sale, then pack and ship the device (running risk of damage in transit), then take money out of my paypal account. Well $100 might not be enough. Especially when I have to realistically take into account the 25% chance I never actually do anything with the phone as I will keep it as a backup until I've got another backup at which point the phone has lost all its value.

I think this will be very very popular. I do not think Apple is doing this to boost iPhone sales. I think they are doing this to cut out middle men in a profitable transaction that is happening millions of times a month. This also might drive sales to the Apple store since Cell Stores were offering easy trade in process already.
Rating: 6 Votes

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