Apple is planning to launch a trade-in program for its iPhones in China after such a program boosted sales of the smartphone in the United States, according to sources familiar with the matter.
The trade-in program could launch as soon as March 31, which will allow customers to trade in old iPhone models to Apple stores located in China to gain credit to be used on Apple products.
Apple is reportedly working with Foxconn Technology Group for the trade-in program. Both Apple and Foxconn, however, declined to comment on the matter when requested by Bloomberg.
Apple CEO Tim Cook previously stated that China could possibly overtake the United States as the biggest market of the company, with Cook adding that he is looking to double the number of Apple Stores in the country by the mid-2016. The demand in China for iPhones with larger screens helped Apple post a record profit of $18 billion for the fourth quarter of 2014.
The China trade-in program will have the employees working in Apple Stores to assess the condition of iPhones being traded in before stating an offer in store credit. Foxconn will then purchase the traded in iPhone directly with Apple never taking ownership of the devices.
Foxconn will then perform repairs on the devices if any are required before selling them through a variety of e-commerce websites. According to the source, Foxconn also has future plans to sell the traded older models of iPhones through physical outlets and to make the trade-in program available online.
The trade-in program planned for China will follow the expansion of such a program in the United States. The U.S. trade-in program of Apple, which launched in 2013, is now allowing customers to trade in devices not made by Apple for Apple device credit.
Purchasing the latest model of the iPhone in the United States now resembles purchasing a new car, as owners look to lessen the cost of upgrading their smartphones by trading in older models. In the United States, the trade-in program partner of Apple is Brightstar Corp., which sells traded devices to other countries.
Before the launch of the iPhone 6 and iPhone 6 Plus last September, wireless carriers in the United States released buyback offers that gave customers up to $300 in credit in exchange for their older model iPhones.
According to Recon Analytics analyst Roger Entner, around half of the customers that bought iPhones in the United States over the final quarter of last year decided to trade in their older iPhones to defray the cost of newer iPhones.
Photo: Choo Chin Nian | Flickr
