Ondrej Holzman Apple plans to launch a program to buy back used iPhones, which it would like to boost demand for the latest iPhone 5 while still making money from old models in developing markets. He claims it Bloomberg citing unnamed sources.
Apple should cooperate with Brightstar Corp., a distributor of mobile phones, which also deals with the purchase of devices from, for example, American operators AT&T and T-Mobile. Apple also sells its phone with them, which now wants to motivate customers to buy the latest model by offering money for older iPhones. At the same time, he would immediately earn money abroad on older devices.
[do action="quote"]If people can't afford a new Mercedes, they buy a used one.[/do]
Representatives of both companies - Apple and Brightstar - refused to comment on the whole matter, but it would make sense for the Californian giant to launch such a program. Israel Ganot, CEO of Gazelle, a company that buys back mobile devices online, says that 20 percent of Americans will buy a new smartphone this year thanks to buybacks.
AT&T, for example, now pays $200 for a working iPhone 4 and iPhone 4S, which is the price at which a customer can buy an entry-level iPhone 5 with a two-year contract. Apple has so far paid little attention to this market, but as the competition grows and Apple itself loses a little, it may change its attitude. "The overall size of this market is growing rapidly," Ganot stated.
Buyback programs are used both to support sales of new devices in developed markets and to support sales in developing markets. There is a significantly higher demand for cheaper devices there. Apple would thus both increase its share in developing markets, where it is losing due to the higher price of the iPhone, and would also avoid possible cannibalization in its own ranks when it exports older devices from the United States.
"The iPhone is an iconic device that people around the world want to own. If they can't afford a new Mercedes, they'll buy a used one." explains the situation David Edmondson, head of eRecyclingCorp, another company that focuses on buying back devices.
Although Apple has been offering it since 2011 online buyback program, which is provided by the PowerON company, but this time it would be an event on a completely different scale. The Californian company would launch the purchase of iPhones in Apple Stores, which are visited by a huge number of customers every day across the country, and would thereby eliminate problems with sending products.
The huge problem with this is that if you auction your phone, you will get more for it than if you sell it to such companies. There is at least one in the Czech Republic and when I looked at the prices, I would never sell it like that.
Can you please specify which one?
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