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In a bid to boost sales of its latest iPhone 5 smartphones and catalyze current customers to upgrade their handsets, Apple intends to start a trade-in program in retail stores, according to a media report. The move will not only help Apple to boost sales in the U.S., but will also provide Apple additional low-cost hardware to sell in emerging markets.

When Apple released first three or four generations of iPhones, it was pretty sure that a significant amount of buyers will upgrade their smartphones after a year or two of usage. However, as the popularity of the iPhone increased dramatically in 2010 – 2013, smaller percentage of customers upgraded their phones after a year or two. Moreover, absence of breakthrough new features also slow-downed the upgrades. As a result, Apple needs to catalyze its existing customers in the U.S. to buy newer iPhone models, but without lowering prices of its products.

As a result, Apple decided to trade-in older iPhones and sell newer models at discounts. Apple has teamed up with Brightstar Corp., a mobile-phone distributor, to run the exchange program, reports Bloomberg news-agency. Brightstar also handles trade-ins for AT&T and T-Mobile US, as well as other carriers and device makers.

“This will help them sell more phones, because it will lower the consumer’s out-of-pocket expense,” said Roger Entner, an analyst at Recon Analytics LLC.

By trading-in older iPhones, Apple solves two tasks: it sells the latest technology to customers in the U.S. and gets cheap hardware to sell in the emerging markets. The company needs affordable smartphones to popularize iOS and Apple eco-system in general in developing countries, but it has been reluctant develop inexpensive models to address those markets.

Apple currently has a Web-based recycling service, in a partnership with PowerOn Services, offering to pay people for their used iPhones, iPads or Macs. Apple collects 80% of its used devices in the U.S., and resells most of them through distribution centers in 50 countries. The retail program will let Apple to buy back even more hardware.

Tags: Apple, iPhone, Business, iOS

Discussion

Comments currently: 14
Discussion started: 06/07/13 12:44:17 AM
Latest comment: 07/07/13 02:47:43 AM
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1. 
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0 4 [Posted by: linuxlowdown  | Date: 06/07/13 12:44:17 AM]
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- collapse thread

 
yes you can, but your Apple might last longer than you, when you have one kidney.
3 0 [Posted by: kailrusha  | Date: 06/07/13 04:39:08 AM]
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2. 
Stop feeding the troll you guys! Where is Anton to ban this retard??
2 0 [Posted by: TAViX  | Date: 06/07/13 08:34:27 AM]
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- collapse thread

 
agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:46:58 AM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:47:14 AM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:47:43 AM]
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3. 
its started..............apple are not selling anywhere near the volume they have become used to, partly due to slow economic conditions and the fact that the iphone 5 only offers very marginal improvements over the previous model

No more bazillion dollar quarterly revenues to feed their ever growing greed
1 0 [Posted by: alpha0ne  | Date: 06/08/13 12:53:50 AM]
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