Apple launches iPhone trade-in to boost sale of new handsets

US iPhone users can trade in their smartphones for credit towards buying a new model, thanks to a move by Apple, AFP reported.

The California company launched a trade-in programme in the wake of unconfirmed reports of a 10 September event which would see new iPhones from Apple with rumors suggesting devices from a gold handset to a low-price version aimed at emerging markets.

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

She said Apple Retail Stores is launching a new program to assist customers who opted to bring in their older iPhone models for reuse or recycling, without specifying how much Apple was paying for old iPhones.

Commentators suggest the older models could fetch $300 or so depending on the model at websites or electronics shops that bought used handsets.

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

There had been much speculation about whether Apple would shift its strategy of focusing on premium devices priced at the high-end of the market to include a lower-cost budget handset.

Commentators point out that though Apple was poised to start offering an in-store trade-in programme, consumers already had several options to convert their old iPhone into cash, which was, in some cases, good enough to get their next one for free.

The move did not come as surprising to some commentators who pointed out that the company already had an online recycling programme that allowed consumers to trade their iPhone for credit on an Apple gift card. Offering a competitive trade-in programme went a long way towards helping ensure customers stuck around, particularly if they received a gift card instead of cash, as was the case with Apple's existing online program.

There was plenty of competition in the field though with AT&T, T-Mobile and Verizon all launching early-upgrade programmes this summer that relied on consumers trading in old devices. Retailers including Best Buy, Radio Shack and Amazon.com also had trade-in programmes, as did manufacturers including Samsung and HTC and resale sites Gazelle.com and NextWorth.com.

The appeal of trade-in programmes became clear if one looked at the numbers - a two year old 16GB 4S currently fetched around $230 in some trade-in programmes, enough to cover the purchase of a new model at the usual subsidised price of $199.