The recent reports have revealed Apple Inc. (NASDAQ:AAPL) to be introducing a trade-in-program for iPhones in China, after a similar program bolstered sales in the USA.
According to some anonymous sources, consumers will be able to take older iPhones to Apple stores in China for credit against the company’s products as soon as March 31st this year. Along with that, Foxconn Technology Group will be buying and re-selling the phones as part of the program. However, both Foxconn and Apple made no comment over this.
As per statements provided by Apple’s Chief Executive Officer, Tim Cook:
“China is poised to overtake the U.S. as Apple’s biggest market, and we’re working to about double the number of stores in Greater China by the middle of next year.Its China trade-in plan follows an expansion of a similar program started in 2013 in the USA, where the company is accepting non-Apple devices for the first time.”
During the final quarter of year 2014, Chinese demand for larger-screen iPhones helped fuel a record profit of US$ 18 billion.
Also, according to an analyst with Recon Analytics LLC (who estimates about half the people buying iPhones in USA during the final quarter of 2014):
“It has certainly been a driver for sales pickup.”
Not to mention, the deal with Foxconn deepens Apple’s relationship with its largest supplier, whose Taipei-listed flagship, Hon Hai Precision Industry Co., gets half its revenue from making iPhones, iPads and MacBooks.Foxconn also is in talks to sell the iPhones through physical stores and may take the trade-in program online in the future.
According to IDC, in the final three months of last year, Apple’s iPhone market share rose to 12.3% in China, in second place behind domestic maker Xiaomi Corp. For the total year, Apple wasn’t even in the top five phone makers in China.
