Why companies pay you large sums for your old iPhone

But for people who want to spend less – in one case, absolutely nothing – to upgrade, Apple (AAPL) And big wireless carriers are offering big discounts to people trading in their older devices.
T-Mobile (TMUS) And Verizon (WZ) Customers’ phones are being given trade-in credits ranging from old 200 to 50 850, depending on how old their phone is and whether they already have a plan with the carrier. AT&T, meanwhile, will effectively offer customers a free phone when committed to an unlimited data plan for 30 months, while trading in older phones priced at at least 95. (AT&T (T.) Owned by CNN’s parent company, VernerMedia).

Third Pal and other smartphone manufacturers, like some third-party resellers, also offer their own trade-in programs. You Paul is currently offering a discount of up to $ 500 for the iPhone 12 lineup, if you trade in its old and smartphones depending on its age and status.

The values ​​in the trade of the old smartphone can be surprisingly high as the trade-device has become an important part of the life cycle of the device. In addition to providing users with the opportunity to get a new phone for a fraction of its price, it helps companies accelerate sales by instructing more frequent upgrades, luring carriers into longer contracts, delivering more affordable devices to secondary markets and providing raw materials. Content that companies can reuse to make new phones more environmentally friendly.

Push upgrade

The trade-in program gives wireless carriers and manufacturers a way to entice new customers and prevent existing customers from moving away from their products – as we have seen with AT&T’s free iPhone deals.

David Mueqen, research director at tech advisory firm ABI Research, said: “This is the closest thing to reviving the subsidy, which was first introduced to the U.S. by the iPhone.

The main point to consider trade-ins is that smartphone users hold their devices longer, often leaving that model or two (sometimes even more) before buying a new one.

Motivation to upgrade smartphones has been a problem for consumers for the past few years and most flagships have very little difference with their predecessors, McQueen said.

The iPhone 12 comes with 5G.  But not everyone will pay attention
While companies hope to provide enough reason to upgrade 5G speeds and features, industry estimates point to the fact that such capability is not really such a significant factor for consumers. The still spread of 5G networks around the world, and cases of limited use for smartphones compared to more advanced technology such as self-driving cars, will still reduce the appeal of some people to accept the switch.

“It simply came to our notice then [carriers] McQueen added that apart from upgrading to 5G, it should be marketed as another ‘G’.

It’s too early to know how well the iPhone 12 line will sell, but if the 5G isn’t a huge draw, trade-ins could help move additional improvements.

Back to market

Smartphones often have a shelf life and utility that goes well with the release frequency of new models, giving companies an additional source of revenue even for older devices.

Apple shipped more than 11 million devices for renewal in 2019, according to the company’s latest environmental report.

MQN says that those that are not resold by phone carriers or smartphone companies may end up with insurance companies replacing lost or broken devices for their customers or being sent to emerging markets where consumers are more price conscious.

A recent report by Counterpoint Research found that most of the growth in the innovative smartphone market last year came from regions such as India, Latin America and Africa.
IPhone 12: What you need to know about Apple's new 5G phone lineup

According to analysts, the programs sell refurbished phones to users willing to buy a few older premium models.

“[It’s] Like the used car market; There are some who would have a Mercedes older than the 2021 Hyundai, “said Ross Rubin, chief analyst at Ritical Research.” Because of this they can become more enthusiastic, without having to pay to buy more 700 or more. In the current pay generation. ”

And that’s a trend that’s likely to get stronger. Research firm IDC predicted earlier this year that about 333 million used smartphones would be sold in 2023 – compared to the number sold in 2018 – with a total market value of $ 67 billion.

What’s inside

Another reason why older phones are valuable to companies is because of what they have.

Apple Pal is working to curb the environmental impact of its huge global manufacturing operations, expand recycling programs and ensure complete carbon neutrality by 2030.

“Manufacturers place more emphasis on this focus, they talk about the recycled material they use to make their phones.”

As part of that effort, Apple Play made this commitment to sustainability during the iPhone launch event on Tuesday, and proudly stated that the magnets in the iPhone 12 lineup are all made from 100% recycled rare earth material. For many years, the company has been developing and showing robots that cut down old iPhones and separate reusable components for new devices. The company also recycles other materials such as aluminum and tungsten that are used in new products.