On Friday, Apple launched a new program for customers that want to trade in their current iPhone so that you can get credit for a new one. This program has been rumored since June.
CNBC is suggesting that users that want to trade in their new iPhone must leave the store with a new contract.
Apple has offered a different version of a recycling program for a while now. Apple’s Reuse and Recycle Program offered Apple Store gift cards for people that turn in iPhones, iPads, Macs, PCs, etc.
MacWorld reports that a used 32GB iPhone 5 in good condition can get around $366.
Apple is not the only company that offers cash for iPhones. There are services like YouRenew, NextWorth, and Gazelle that offers cash for used phones.
So why is Apple setting up trade-in programs in retail stores? It is believed that Apple is seeing 20% of their phones sold in retail stores and CEO Tim Cook wants to see that number raised.
By offering credit for traded in phones, it could also prevent consumers from thinking about switching to an Android device as well.