Apple launches iPhone trade-in program in US

The California company's trade-in programme kicked off in the wake of unconfirmed reports of a 10 September event at which Apple will unveil new iPhones, with rumors ranging from a gold handset to a low-price version aimed at emerging markets.

"iPhones hold great value," Apple spokesman Amy Bessette said in an email to AFP.

"So Apple's launching a new programme through its retail stores to assist customers who wish to bring in their previous-generation iPhone for reuse or recycling," she says.

She would not specify how much Apple is paying for old iPhones, but they can fetch about US$300 or so from an array of websites or US consumer electronics shops that buy old handsets depending on the model.

The Wall Street Journal earlier this month reported that Apple had asked its Taiwan-based supplier, Hon Hai Precision, to begin shipping two new versions of the iPhone in September, including a lower-cost model.

There has been speculation that Apple will shift its strategy from making premium devices priced at the high-end of the market to launching lower-cost models appealing to the users who cannot afford iPhones at the current prices.

A survey by Gartner said Apple's share of the smartphone market worldwide fell to 14.2% in the second quarter, while Samsung's rose to 31.7%.

Samsung has had global success with smartphones powered by Google's free Android software, which now dominates the market.

Mobile market maturing

As the smartphone market in the United States and other Western countries matures, companies may have better luck encouraging upgrades rather than reaching out to first-time buyers, according to Gartner analyst Van Baker.

Motives for Apple's trade-in programme may help to maintain its iPhone users and boost Apple's lucrative iTunes shop for buying digital music, films, and books.

"Keeping people in the fold is what it is all about," Baker said. "The question for me is whether it will be competitive with programmes that already exist."

Global Equities Research analyst Trip Chowdhry saw the trade-in programme as Apple delivering product management instead of product innovation.

Analysts and Apple fans have been watching whether chief Tim Cook will live up to the legacy of company co-founder Steve Jobs when it comes to wowing the world with culture-changing devices.

"Tim Cook's Apple is very different from Steve Jobs's Apple," Chowdhry said. "This is not the thing customers are looking for." He said Apple lovers are more likely wondering "Where is my iWatch" and "Where is my Apple TV."

Cook took over as chief of the Cupertino, California company in 2011 as Jobs stepped down to grapple with illness that took his life later that year.

Cook is considered an operational mastermind with a relentless work ethic and is believed to have played a leading role in the gadget company's turnaround. Cook was Apple's chief operating officer until his elevation to chief executive.

There is no word on whether the iPhone trade-in programme will be available in other countries, including South Africa.

Source: AFP via I-Net Bridge