iPhone Trade-In Program To Be Launched, Apple's Strategy To Catch Up With Samsung’s Market Lead?

Apple is currently working on an iPhone trade-in program to boost its market sales.

Reportedly, the tech giant will open an iPhone trade-in system , which allows Apple users to exchange in their old handset devices for a credit toward the latest Apple products. Ultimately, the goal of this program is to increase the market sales of their newer devices and this is the first time for Apple to offer such kind of program like the iPhone trade-in.

According to sources, who chose not to be identified because Apple is still keeping their mum about the program, the tech company will be partnering with Brightstar to run the iPhone trade-in program, the same business that handles the phone trade-in programs for AT&T and other networks. AT&T is currently crediting trade-in iPhone 4s and 4S2 for $200, which is enough already for consumers to purchase an entry-level iPhone 5 without even a down payment. However, it is not known yet if Apple will apply the same rates for their own iPhone trade-in programs.

During the past quarters, Apple sales has been slowing down, while Samsung just topped the list for the best selling smart phone brand in United States this May. With the iPhone trade-in program set to begin this month, Apple aim to encourage their current users to upgrade to iPhone 5 and turn in their older Apple gear devices, thus a way to improve their market sales. Should the program work or be a flop, everyone will know it once the iPhone trade-in program already begins.

Israel Ganot, the chief executive officer of Gazelle Inc, which is an online trade-in company for mobile devices said, "The overall size of this market is increasing rapidly. If iPhone trade-in will work, this will definitely give a huge lift to Apple's sales. According to Ganot's estimate, 20%of US consumers purchasing a smart phone this year will use a trade in program, which is a huge increase from 11 percent in 2011.

Apple and Brightstar has not made any statements yet regarding this news about the upcoming iPhone trade-in program.