New Delhi, June 9: For the first time ever, Apple will let users trade in their old iPhones for the new ones, Bloomberg's sources say. Till date, Apple has never given its customers an incentive to buy a new version of the iPhone, and it has never run an exchange program like so many cellphone providers have for years.
Bloomberg says for this the company has teamed up with Brightstar, a firm that runs similar trade-in programs for carriers like AT&T and T-Mobile. Sources say, customers will now be able to sell back their old iPhone 4s and 4Ss in exchange for a shiny new iPhone 5 beginning this month. The exact terms of the trade-in program haven't been disclosed, so it's unclear how much credit participants will get toward a newer device.
It seems that part of the new in-store trading initiative has to do with boosting sales. Experts say discounts on new iPhone will help "accelerate sales and drive up their share in places like the U.S., where the smartphone market is getting saturated."
This tactic will also help the company to make sure that the consumer sticks with Apple rather than going for another mobile phone. Each iPhone that is bought back will reportedly be resold in emerging markets, such as Asia, Africa, and South America, where smartphone adoption is still in its early stages. Thus, for a single new device, Apple could theoretically snag two users for the cost.
BrightStar takes about 80 percent of used devices in the US and resells them to distributors in 50 countries. BrightStar also handles trade-ins for companies like AT&T and T-Mobile, as well as several other unnamed carriers and device makers.