In response, Apple has teamed up with trade-in expert Brightstar Corp. to handle the program to exchange older iPhone 4 phones for the new iPhone 5. Apple hopes that by encouraging their existing base of loyal users to switch to the new phone, they can spur additional sales.
The iPhone 5 has been selling briskly and the new plan certainly can’t hurt matters. Both Telecom companies T-Mobile and AT&T already have agreements with Brightstar Corp. to operate trade-in programs. In the case of AT&T, the company may pay enough money for the older iPhone 4 to make the iPhone 5 free with a two-year agreement.
An analyst at Recon Analytics did not see Apple’s new program as being superfluous given AT&T and T-Mobile. Rather, he sees it a good move on the part of Apple to embrace the lucrative iPhone refurb market. Just last month, Samsung surpassed Apple as the top smartphone seller.