Most of the major smartphone brands offer some pretty big trade-in promotions for users looking to upgrade their phones. Major players like Apple will give you a substantial amount of credit when you trade in your old device, but why is that promotion so beneficial to the company?
A new video of YouTube channel Apple explained sheds some light on the benefits of trade-in devices for Apple. At the end of the day, this promotion, which benefits Apple customers immensely, is very useful for all parties involved.
Apple initially began offering exchange securities in 2013, after the company experienced its first quarterly earnings drop in years. They started promoting the exchange option heavily in 2017, after the launch of the $ 999 iPhone X.
The idea was that the market had become saturated and people didn’t buy new phones as often. By offering trade-in credit, Apple helped convince users to buy new phones, even as prices began to rise.
But the benefits don’t end there. Apple would essentially lose any trade-in credits they offered for profit if they couldn’t do anything with the devices that were trade-in. For phones in good condition, the company can refurbish the devices and resell them for more affordable price in emerging markets, but what about phones that the company cannot refurbish?
For damaged devices, Apple has built a robot that is capable of recovering any recyclable material on a phone. The robot, known as Daisy flower, is capable of recycling 200 phones per hour, recovering precious materials that could otherwise end up in a landfill.
At the end of the day, Apple’s trade-in promotions are a win for everyone. Consumers can trade in their old phones for a discount on upgrades, while the business can make even more profit by selling some phones twice. And the environment wins, as the company can reuse materials in older phones rather than send them away.