On Friday, Apple Inc. launched its iPhone trade-in programs for its U.S. retails stores.
According to Apple, its "reuse and recycling" program for iPhone devices was aimed to still promote value on iPhones even after they have been pre-owned.
"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," according Apple's spokesman.
To be eligible for the trade-in programme, iPhone owners need to show that their devices to be trade-in still work through powering them on. Trade-in customers should also be under wireless carrier contracts. However, trade-in programs do not qualify traders for a new contract.
For those who will trade and their trade-in credit approved was lower in cost to that of the cost of the iPhone for trade-in, they will only be eligible for a gift card to compensate for the remaining balance.
However, those consumers from Australia who are interested to trade their old iPhones have to wait for further announcements. According to an Apple Australia representative, the new iPhone trade-in program will still not be available in the country at this early stage.
According to a report from The Wall Street Journal, Apple opened their trade-in programs so customers have a cheaper option to pay for new iPhone handsets as compared to paying up for costly old iPhone repairs.
Apple said that its partnership with Brightstar for the trade-in programs also open the opportunity to create recycling jobs as most of the iPhone's components will be reused and recycled.
The iPhone trade-in program required both customers and Apple employees to input important physical information about their old iPhone which they will trade-in. Both customers and employees were instructed to specify any tear or damages of their old handset before they will be given their trade-in scores.
Apple's trade-in program is one of company's efforts to retain customer loyalty as well as attract future users and hopefully snatch the bigger bulk of market share from Apple's competitors.
In a recent report from Stifel analysts Sanjiv R. Wadhani, William C. Peterson and Mike Lin, Apple is behind Nokia in terms of the overall handset sales for the second quarter. Nokia obtained a 15 per cent share of the overall market while Apple Inc was far behind a 7 per cent share.
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