How Apple's New iPhone Trade-In Program Works

With the April 10 launch of Samsung Electronics Co (OTC: SSNLF)'s Galaxy S6 and Galaxy S6 Edge just around the corner, Apple Inc (NASDAQ: AAPL) recently announced that the new iPhone Reuse and Recycling Program will now allow consumers in the U.S., UK, Canada, Germany, France and Italy to trade in select smartphone models -- including the Samsung Galaxy S5 -- for credit toward purchasing an iPhone 5c, iPhone 6 or iPhone 6 Plus.

How The New Program Works

In addition, Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOGL)'s Android phones, Microsoft Corporation (NASDAQ: MSFT)'s Windows phones and BlackBerry Ltd (NASDAQ: BBRY) devices can now be traded in for iPhone purchase credit.

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Select models of Samsung, HTC, LG, Sony Corp (NYSE: SNE) and Nokia Corp (NYSE: NOK) smartphones will all be eligible for trade-in. Smartphone trades through Apple's Reuse and Recycling program can be made both online through Apple's website and in-store. The value of the trade-in credit will depend on the age and condition of the traded device.

Trade-In Credit Value

Apple first launched the Reuse and Recycling Program in 2013 to promote upgrades to the iPhone 5 or iPhone 5S.

The program offers consumers a credit of up to $175 for a new iPhone. No announcements have yet been made regarding the trade-in value of other smartphone devices.

Apple's New Partners

Apple's apparent partner in the Reuse and Recycling Program is the third-party smartphone buyback company Brightstar. In addition to smartphone buy-backs, Apple has also partnered with Dataserv to buy back PCs.

Credits from traded-in PCs can be applied toward the purchase of a new Mac; however, phone and PC credits cannot be used toward the purchase of an Apple Watch.

Soon, consumers in China will also be able to trade in iPhones through a partnership between Apple and Apple's largest supplier, Foxconn Technology Group.

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