Want a new iPhone? Trade in the older one

Apple to start exchange program: report.

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By Dileep Thekkethil

Apple Inc. has a new formula for attracting consumers to its flagship iPhone5. The world’s second largest smartphone manufacturer has struck a deal with Brightstar Corp. to run an exchange program for the existing iPhone customers who want to upgrade to iPhone 5, reports Bloomberg. Brightstar, which currently handles similar programs for AT&T and T-Mobile, already has got good reputation in the exchange market.

The trade-in program may will start this month, according to Bloomberg.

Apple sees the exchange market that lies untapped by other competitors a big growth area. The company expects to increase its revenue by luring more existing customers to utilize the exchange offer and upgrade their devices to the iPhone5.

This strategy was previously tested successfully by some third party companies that sell iPhones. When iPhone 3G was introduced, these firms encouraged consumers to trade-in the previous generation of iPhones and take home the latest version by availing of credit for the new purchase.

The demand for iPhone 4 and iPhone 4s is still large in countries other than the United States. The main reason for this is the price tag of these phones. The new deal will open a fresh market for Apple to trade used phones through Apple retail stores in countries where the company’s share is lower and the demand for used phones are higher. Apple has already confirmed that it has no intention to sabotage its growing market for iPhone 5 in the United Stats by selling used phones of an older generation.

Bloomberg reports that the new tactic was adopted due to the slow growth rate of iPhones. The new service will allow the existing iPhone customers to take their old iPhone to an Apple Store and bring home a brand new iPhone 5 on the credit received for the older one. The new service will go live in the near future.

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