A new consumer option offered by Apple that has been rumored for weeks is finally arriving at all Apple Stores nationwide: Now you can trade in your used iPhone towards the purchase of a new one.
This, of course, isn't the only iPhone trade-in program in existence. Best Buy, AT&T, Verizon Wireless, Amazon offer iPhone trade-ins, along with services like Gazelle, which tries to take your old iPhone off your hands at discount cash-in rates. But this is Apple, and they're offering a lot for some versions of the iPhone.
Apple spokesperson Amy Bessette confirmed the new program, called the "iPhone Reuse and Recycling Program," to the Washington Post, saying, "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. 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."
The program, which takes place in brick-and-mortar Apple Stores on either the show floor or at the Genius Bar, works through BrightStar Corp., which is a mobile-phone distributor offering buy-back and trade-in services. Depending on the iPhone you're trading in, Brightstar offers enough to cover over the cost of a new 16GB iPhone 5 with a two-year contract, and take off the majority of the price of a 32GB variant of the iPhone 5.
Trade-in prices, according to 9to5Mac, fluctuate based on supply and demand, but run to about $250 for a 16GB iPhone 5 in good condition. Other trade-in values include a nearly two year-old 8GB iPhone 4 (GSM model) for between $120 to $140, which is most of the way towards the purchase of a new iPhone 5. CDMA versions of the same phone will be worth about $80.
When you go into an Apple Store, they'll take a look at your iPhone and you'll get a quote, after which you have the option to take the trade-in value in an Apple Store gift card or walk. Before you go there, make sure you wipe the phone of your personal data, because once you accept the gift card, your former iPhone is going to be packaged in plastic and shipped to BrightStar for recycling or redistribution.
According to a previous report from 9to5Mac, Apple's trade-in values can't really compete against the best trade-in services, but Apple is hoping the convenience of the program and a gift card for their store in exchange will still give them an edge.
One of the reasons why Apple is starting to accept trade-ins is emerging markets outside of the U.S. Until now, Apple hasn't paid much attention to low entry-price markets, where Android has generally been more successful gaining market share (and where, for example in Latin America, upstart Firefox OS is trying to get a foothold). With the trade-in program, Apple plans on expanding its refurbished iPhone offerings in emerging markets to steal away first-time smartphone users from Android, Firefox, and other competing operating systems.