iPhone 5 vs. iPhone 5S Comparison: Apple Launches In-Store Trade-In Program Ahead of 5S Debut
Apple stores launched a new iPhone trade-in program on Friday, signaling the first time the company has implemented such a policy.
The news confirms speculation that was building up throughout the week as the nation prepares for the much-anticipated release of the new iPhone, which is expected to hit the shelves in September.
Apple spokesperson Amy Bessette told The Washington Post that the program will be called the "iPhone Reuse and Recycling Program."
"iPhones hold great value," she said. "So, Apple Retail Stores are launching a new program to assist customers who wish to bring in their previous-generation iPhone for reuse or recycling. 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."
The move to implement this program could be based on a number of reasons. Apple has seen a drop in sales for their higher-end iPhones, so the company could be looking for ways to encourage customers to swap older phones in order to pay less for a newer one.
Prior to this policy, Apple only had a mail-in option for customers who wanted to exchange their older phones for gift cards or store credit. The new policy goes into effect in Apple stores throughout the nation.
Todd Day, who serves as the senior industry analyst for Frost & Sullivan, told CNBC that the program will help Apple retain customers.
"If you look at Apple's overall business model, it's not just about the devices but the overall universe," he said. Offering a competitive trade-in program helps ensure those customers stick around, particularly if they receive a gift card instead of cash, as is the case with Apple's existing online program."
Apple is expected to unveil the next iPhone on Sept. 10.
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