Apple to Start iPhone Trade-Ins


Apple really wants its users to upgrade to the newest iPhone, so it's starting an iPhone trade-in program to do just that.

Apple is partnering with Brightstar Corp. to run the trade-in exchange, according to Bloomberg News. The news comes from an unidentified source "familiar with the matter."

Mobile-phone distributor Brightstar also does trade-ins for AT&T, T-Mobile and other carriers, likely because of demand for refurbished iPhone 4s in the global market. Apple's stake is obvious -- it wants users to spend money on new models to goose sales and dropping shares. Neither Apple nor Brightstar commented on the story.

Still, a trade-in can drop the price of a new phone by as much as $200, and analysts are predicting that 20 percent of U.S. consumers will use the the trade-in system. The trade-in has also been popular for Apple in the emerging markets, such as India, so why not the United States?
Apple shares have dropped 38 percent from September 2012, and Apple is rethinking its approach as the no-discount tech company. With Samsung more than willing to offer student rebates and trade-ins, Apple has to also become competitive.
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