In late August, Apple (NASDAQ:AAPL) announced that it would offer a trade-in program that allows customers to exchange their old iPhones for store credit that can be used to purchase a new phone. Any customer who goes through the exchange process can expect a store credit somewhere between $120 and $250. The amount will depend on the version and condition of the phone being turned in. This is a great deal for customers who wish to continue using an iPhone as it allows them to save money while being part of Apple’s technology revolution.
Apple is, of course, hoping to retain as many of their current customers as possible while maximizing revenue of the new iPhone 5S and 5C. Now while Apple is hoping to generate additional revenue from this program, there are several other companies hoping to profit from the idea as well. We take a look at four:
Wal-Mart (NYSE:WMT) created a competing trade-in program that offers consumers a few advantages. First, the company will be retailing the new phones at a discounted price. Wal-Mart plans to offer the iPhone 5C at $79 with a contract from AT&T (NYSE:T), Sprint (NYSE:S), or Verizon (NYSE:VZ). This price is $20 less than Apple’s list price. The company also plans to offer the more advanced iPhone 5S for $189 (a $10 discount from the list price). Although Wal-Mart will not be receiving a discount from Apple, the retailer hopes to make up for the discounted prices through huge customer demand.
A second advantage is that customers can easily swap any old smartphone or iPhone. This means that consumers can exchange an Android and walk out with an iPhone. Or if they no longer wish to use an Apple product, they can sell their old iPhone and walk out with an Android of their choice. Wal-Mart plans to offer customers a credit of between $50 and $300 that can be used to purchase a new smart phone. This could be a major advantage as customers can potentially get a higher refund towards the purchase of a new phone with a lower price compared to Apple stores.