Apple, a wireless carrier offering big discounts to iPhone owners trading on older devices – Fresno, California

Fresno, California 2020-10-18 18:11:31 –

This week, Apple announced the iPhone 12 mini for $ 699 for users who are hesitant to spend more than $ 1,000 on more premium models by expanding the price range of their flagship smartphones.

But for those who want to spend less on upgrades (and in some cases don’t want to do anything at all), Apple and major wireless operators are giving big discounts to those who trade on older devices. ..

T-Mobile and Verizon offer customers trade-in credits ranging from $ 200 to $ 850, depending on the age of the mobile phone and whether or not they have plans with the mobile operator. AT & T, on the other hand, effectively provides customers with free calls when they promise an unlimited data plan for 30 months and trade old phones worth at least $ 95. (AT & T owns WarnerMedia, CNN’s parent company).

Apple and other smartphone makers, like some third-party resellers, offer their own trade-in programs. Apple is currently offering discounts of up to $ 500 on its iPhone 12 lineup when trading in older smartphones, depending on their age and condition.

Trade-in prices for older smartphones can be surprisingly high, as trade-in has become an important part of the device life cycle. Not only does it provide users with the opportunity to get new phones for a fraction of the price, but it also encourages more frequent upgrades to increase corporate sales, provide carriers with a way to attract customers to long-term contracts, and better for the secondary market A material that provides affordable devices and can be reused by live businesses to make their new phones more environmentally friendly.

Upgrade push

The trade-in program provides wireless carriers and manufacturers with a way to seduce new customers and prevent existing customers from switching from their products-as we saw in AT & T’s free iPhone trading.

“It’s probably the closest thing to reviving the subsidies that were prevalent in the United States when the iPhone first hit the market,” said David McQueen, research director at technical advisory firm ABI Research.

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The main issue that trade-in aims to address is that smartphone users are more likely to hold their devices longer and skip one or two (and in some cases more) models before buying a new model. That is.

“The motivation for subscribers to upgrade their smartphones has been a problem over the last few years, and most flagships are barely differentiated from their predecessors,” McQueen said.

Companies want to provide good reason for 5G speeds and features to upgrade, but industry estimates point to the fact that such features aren’t that important to consumers. .. Switching is still appealing to some people as 5G networks are still widespread around the world and have limited use of smartphones compared to more advanced technologies such as self-driving cars. May fade.

“At this point, there doesn’t seem to be a real reason (to carriers) to upgrade to 5G, except that it’s sold as just another” G, “” McQueen added.

It’s too early to know how much the iPhone 12 line will sell, but if 5G isn’t a big deal, trade-in can help drive additional upgrades.

Return to the market

Smartphones often have shelf life and utility that far exceeds the frequency of new model releases, providing businesses with an additional source of revenue even on older devices.

According to the company’s latest environmental report, Apple sent in 2019 to play more than 11 million devices.

According to McQueen, phones that have not been resold by mobile or smartphone companies are in emerging markets where insurance companies tend to replace lost or damaged devices for their customers and consumers tend to be more price-conscious. There is also the possibility of sending it.

According to a recent report by Counterpoint Research, most of the growth in the refurbished smartphone market last year came from regions such as India, Latin America and Africa.

Analysts say the program also sells refurbished phones to users who are willing to buy a slightly older premium model.

“It’s like a used car market. Some people prefer the older Mercedes to the 2021 Hyundai,” said Ross Rubin, chief analyst at Reticle Research. “This allows them to be more motivated in a way, without having to pay more than $ 700 to buy for the current generation.”

And it’s a tendency that seems likely to be stronger. Earlier this year, research firm IDC predicted that approximately 333 million used smartphones would be sold in 2023, nearly doubling sales in 2018 and having a market value of $ 67 billion.

How is the contents

Another reason old phones are valuable to businesses is because of what’s in them.

Apple is working to reduce the environmental impact of its large global manufacturing operations, expanding its recycling program and promising to be fully carbon-neutral by 2030.

“Manufacturers are more focused on this focus and are talking about the recycled materials used to make phones,” Rubin said.

As part of that effort, Apple promoted this commitment to sustainability at the iPhone launch event on Tuesday, boasting that all magnets in the iPhone 12 lineup are made of 100% recycled rare earth materials. For several years, the company has developed and demonstrated a robot that removes old iPhones and separates reusable components into new devices. The company also recycles other materials such as aluminum and tungsten used in new products.

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