Apple to begin iPhone trade-ins this month - report

SAN FRANCISCO Thu Jun 6, 2013 2:53pm EDT

Visitors try the iPhone at an Apple Store in Beijing March 28, 2013. REUTERS/Kim Kyung-Hoon

Visitors try the iPhone at an Apple Store in Beijing March 28, 2013.

Credit: Reuters/Kim Kyung-Hoon

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SAN FRANCISCO (Reuters) - Apple Inc will start a program this month to allow users to trade their older iPhones for the newest model, Bloomberg cited people familiar with the plan as saying, a first for the company as it prepares to introduce a new version of the smartphone.

It has teamed up with Brightstar Corp, a mobile phone distributor that runs similar trade-in programs for carriers like AT&T Inc and T-Mobile, to handle exchanges, Bloomberg cited the unidentified sources as saying on Thursday.

Apple and Brightstar did not immediately return calls for comment.

New iPhones with no wireless contract are priced starting at $649, depending on storage size. Demand is typically strong but investors worry that, as the U.S. market becomes increasingly saturated, smartphone purchases will slow sharply.

A trade-in program can help bolster demand for expensive new models, especially as arch-rival Samsung Electronics Co Ltd steps up an aggressive push to sell its own devices in the U.S. market.

(Editing by Richard Chang)

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Comments (2)
eMJayy wrote:
If you’re really trying to get folks onto the newer phone, why would you continue to manufacturer and distribute the same ancient iPhone 4 and 4S that you’re trying to suppress? Sounds like a marketing ploy to create the illusion that the overall iPhone adoption rate is healthier than it really is.

Jun 06, 2013 6:27pm EDT  --  Report as abuse
SanPa wrote:
An iPod sells for $200. The electronics for making a call cost around $40. $350 for a phone would leave a nice profit.

Jun 06, 2013 6:51pm EDT  --  Report as abuse
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