In-Store Apple iPhone Trade-In Pays Less Then Gazelle - We have recently seen and reviewed the latest and upcoming news that Apple will be offering in-store trade-in on all iPhones for in-store credit. This move into trade-in will position Apple in a better place for increasing retail sales. Apple is reported to buy back several thousand used device today August 30,2013. Apple’s current retail sales has bee lacking in some areas in the past year. Apple knows that it must increase their retail sales per square foot or face the negative changes in their stock price and share-holder trust. Only time will tell how successful this move into the tech-buyback and specifically iPhone-buyback sector will be.
Many industries have adopted the “trade-in” model for their retail and business and product consumerism model. It is said by many to keep these devices from being sold elsewhere by third-parties. The automobile industry has trade-in, the textbook industry also has trade in, and now Apple is offering it consumers of their iPhone.
Cnet Editor Dan said this morning on the ”CBS This Morning” show:
“They don’t want other companies controlling the secondary market”
This seems to be the primary reasoning for this move, however it will increase the in-store sales. There are however 2 major flaws in this program that make it inferior to alternative buyback methods.
- The value that you get from your iPhone from Apple’s in-store trade-in program is much less then many other buy-back sites like DeviceFlip, Gazelle, and others.
- The value that is given to you is only redeemable as an “in-store credit.” Other sites like Gazelle, NextWorth, or DeviceFlip will still offer you an actual cash amount that you can then use on what ever you choose.
The second of these flaws is what Apple is banking their mind on! They hope to keep customers in the store buying their products not someones else’s. This makes complete sense for Apple, but for the everyday consumer it might not be the most ideal trade-in location. For example, you want to change providers and upgrade on a contract to Verizon from AT&T. Well you wont be able to unless you sell your iPhone elsewhere. Also Apple stores are not in all locations around the U.S. This wont give many people looking for in-store credit a location to actually submit their devices.
Josh Boram CEO of DeviceFlip.com noted earlier today in an interview:
“Apple is making the best move in light of their own business model, however other trade-in and buyback companies will still have a chance. DeviceFlip and other companies will beat Apples trade-in prices and will offer you the cash instead of the trade-in in-store credit only. This will give you the cash in your hand for a coming purchase that may not necessarily be “in-store” and by this I mean “in a Apple store.”
We have yet to see how Gazelle is reacting and other large buyback companies, however one thing is for certain, the competition between buyback companies just got a little crazier!
MacRumors say via their latest post on the trade-in program from Apple that it will be good for emerging countries because these used devices coming in will be refurbished and then resold at lower and more affordable prices. However this is what all the other trade-in companies are doing currently as well. Only time will tell which buyback company will win the buyback race!
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