For the first time ever, Apple will be implementing an iPhone trade-in program for its retail outlets as opposed to third-party vendors. A report by Bloomberg notes that the Cupertino-based electronics conglomerate is teaming up with BrightStar Corp., a distributor of T-Mobile and AT&T Devices, to help exchange older iPhones for newer ones and giving payment instantly to customers.
The idea is for Apple to bolster its sales figures while encouraging upgrades for those who do the actually trading in. Apple has slipped as of late in the smartphone and mobile OS markets, dropping to an 18% share in Q1 2013 in the smartphone game while perpetual rival Samsung rose to a commanding 30% share.
The trade-in program with BrightStar will allow Apple to collect used devices from the U.S. and resell them in emerging markets that Apple does not have a significant stake in, though also “where Apple’s share is lower and demand for cheap devices is greater.”
Apple is no stranger to repurchasing its devices, however this is the first time they’re offering their service in-store. Since 2011, Apple has partnered with PowerOn Services Inc. to recycle old iPhones, iPads, and iPods in exchange for giftcards through the Apple website, but the service wasn’t as customer-friendly as the new in-store one is and doesn’t re-promote and redistribute the devices in emerging markets the same way.
Until now, Apple hasn’t really done much in the way of promoting its new trade-in service resulting in low customer awareness and trade-ins through other vendors and phone carriers. AT&T is reportedly buying back iPhone 4 and iPhone 4S models for as much as $200 meaning a customer could essentially upgrade to an iPhone 5 free of charge. Now Apple won’t have to watch its business go out the door to others taking in their devices and they’ll be able to give the aforementioned emerging markets the attention they deserve.
Apple has yet to confirm its service as cited by Bloomberg’s supply chain source. WWDC is slated to kick off on Monday, June 10, in San Francisco and has a built in audience to announce its in-store trade-ins if it opts to do so. But stay tuned to BostInno anyway to get the latest Apple news.
