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A new survey shows that trade-in programs may help sway customers’ loyalty as Apple is rumored to be considering a retail trade-in program to lure more iPhone shoppers to its...
08-05-2013, 09:02 PM #1
Apple Rumored to Offer Its Own Trade-In Program as Consumers Warm Up to the Idea
A new survey shows that trade-in programs may help sway customers’ loyalty as Apple is rumored to be considering a retail trade-in program to lure more iPhone shoppers to its retail stores. The recently released report by the New York-based NPD Group highlights the growing importance of trade-in programs in the fight for retail store smartphone sales. Of those surveyed, 55% of the people said that they would use a trade-in program for their next upgrade, while more than 60% said that a better trade-in offer would sway their choice of retailers.
The report entitled “Trade In, Trade Up, Trade Out” is based on a survey of 1,000 smartphone users conducted in July. According to NPD’s Eddie Hold, trade-ins are “the new competitive battlefield” for smartphone sales. All of the major U.S. carriers recently launched similar programs aimed at making it easier for consumers to upgrade their devices every year and Apple is reported gearing up to partner with Miami-based Brightstar Corp. to offer an in-store trade-in program.
The program is rumored to give consumers the option to cash in exchange for their old iPhones, bringing new customers in to Apple’s stores. The move would also allow Apple to profit from the lucrative smartphone resale market, which ships unlocked previous-generation handsets overseas, where customers prefer unsubsidized smartphones. Brightstar also runs trade-in programs for AT&T and T-Mobile as of right now. Both carriers value an iPhone 4S to be traded-in around $200, though there is no indication of how Apple’s offering will compare. This is somewhat lower than third-party trade-in prices, with companies like Amazon offering up to $300 for a 16GB iPhone 4S ahead of an expected iPhone refresh this upcoming fall.
As of right now, less than 15% of iPhones sold in the U.S. are moved via Apple’s retail stores, a figure which Tim Cook is concerned about. In response, Apple has started to push its retail employees to talk to customers about upgrade opportunities if they bring their iPhone in to a Genius Bar for repairs. This rumored program could be another piece to Apple’s apparent efforts to boost iPhone sales at its own retail stores. When asked about the rumored trade-in program during his company’s most recent quarterly earnings conference call, Cook unsurprisingly declined to confirm whether or not his company plans to launch one. Cook mentioned the following:
There are a number of channels that do trade-in programs now not only in the U.S., but in different regions. And the reason that it's so attractive around the iPhone is the residual value of an iPhone stays so high, and there is so much demand for it, and so that makes the trade-in programs more lucrative to a win-win from many points of view. But we haven't announced anything about us.
Source: NPD Group
Last edited by Akshay Masand; 08-05-2013 at 11:26 PM.
08-05-2013, 11:01 PM #2
Lmao 20.00 for a 4S??? What a insult. Hope that comes with a tube of KY also. Sold my 4S on eBay for 400.00 last yr and didn't have to ship it till my iPhone 5 came in on 9-21. Might do the same again this year depending on what Apple shows us this year.
08-06-2013, 03:27 AM #3
^^ yup. Doubt apple will be competitive with Craigslist or eBay
08-06-2013, 04:57 AM #4
08-06-2013, 06:36 AM #5
Exactly! They want to give you pennies for a phone you pay $600+ for. Worse than the video game turn around for GameStop. By it for $60, sell back for $20 and they sell it for $40 all over again. House seems to win..but they won't get my trophy :]
08-06-2013, 12:01 PM #6
Some people are either reluctant to resell their old devices for one reason or another. Maybe they don't know how to use Craigslist or eBay. For those people this is a useful alternative to having their old device either sit in a drawer or be given away to a friend or relative without compensation. For those of us comfortable with selling our devices privately we can continue to receive top dollar. Frankly this works best for us. If everyone knew how to use Craigslist and eBay the resell value would plummet and that doesn't bode we'll for me come upgrade time.They can have my jailbreak when they pry it from my cold dead fingers.