Why Apple Wants Your Old iPhone

Summary

Apple's trade-in program, launched in 2013 and heavily promoted since 2017, addresses two key challenges: slowing iPhone sales and high device prices. By offering discounts on new iPhones in exchange for old devices, Apple encourages users to upgrade sooner. The company refurbishes and resells functional phones in emerging markets or recycles those in poor condition using a robot named Daisy. This program benefits customers, Apple, and the environment, aligning with Apple's goal of a closed-loop supply chain, where new products are made from recycled materials.

Takeaways

• 😀 Apple’s trade-in program was launched to address challenges like slowing iPhone sales and rising prices.
• 😀 The program began gaining traction in 2013, and by 2017, Apple was aggressively promoting it with the iPhone X launch.
• 😀 Over a third of Apple Store customers now take advantage of the trade-in program.
• 😀 The trade-in program makes it more affordable for customers to upgrade to newer iPhone models.
• 😀 Refurbished iPhones are resold in emerging markets like India, Latin America, and Africa, helping Apple tap into the used smartphone market.
• 😀 If an iPhone is too damaged to resell, Apple recycles it using a robot called Daisy, which disassembles iPhones and recovers recyclable materials.
• 😀 Daisy can process 200 iPhones per hour, recovering materials that would otherwise end up in landfills.
• 😀 Apple is working toward a closed-loop supply chain where all new products are made without extracting new materials from the Earth.
• 😀 Apple has made progress by using 100% recycled rare earth materials in the iPhone 12 as part of their environmental goals.
• 😀 The trade-in program benefits Apple by increasing both new and refurbished iPhone sales, while also supporting environmental sustainability.

Q & A

Why did Apple start offering trade-in discounts in 2013?

Apple began offering trade-in discounts in 2013 after experiencing their first quarterly profit decline in a decade. The move was designed to boost iPhone sales and encourage users to upgrade their devices.

What problem did the trade-in program solve for Apple in 2017?

In 2017, Apple’s trade-in program helped solve two major problems: slowing iPhone sales due to market saturation, and users holding on to their devices longer due to rising iPhone prices, particularly with the $1,000 iPhone X.

How does the iPhone trade-in program benefit Apple?

The program benefits Apple by increasing sales of new iPhones, while also generating revenue from refurbished models that can be sold in emerging markets. This helps maintain Apple’s competitive edge in the smartphone market.

What does Apple do with the old iPhones that are traded in?

Apple refurbishes old iPhones in good condition and resells them in emerging markets like India, Latin America, and Africa. If the device is in poor condition, Apple recycles it using a robot called Daisy to recover valuable materials.

What is Daisy, and how does it contribute to Apple's sustainability goals?

Daisy is a robot designed by Apple to disassemble old iPhones. It can process 200 iPhones per hour, recovering recyclable materials that would otherwise end up in landfills. This contributes to Apple’s goal of achieving a closed-loop supply chain.

What is Apple's goal with its closed-loop supply chain?

Apple’s goal is to manufacture all new products without using new materials from the Earth, relying instead on recycled components. This is part of their broader sustainability initiative to reduce environmental impact.

How is Apple working towards a closed-loop supply chain?

Apple is working towards a closed-loop supply chain by using recycled materials in their products, such as the 100% recycled rare earth materials in the iPhone 12. The company continues to improve its recycling and sustainability practices.

What are the environmental benefits of Apple's trade-in program?

The environmental benefits include reducing e-waste, promoting the reuse of devices, and recycling valuable materials from old phones. By refurbishing and recycling iPhones, Apple helps minimize the environmental impact of smartphone production.

How does Apple's trade-in program help users financially?

The trade-in program benefits users by offering them discounts on new devices in exchange for their old iPhones. This makes upgrading to a new phone more affordable, especially when the cost of new models continues to rise.

In which markets does Apple resell refurbished iPhones?

Apple resells refurbished iPhones in emerging markets such as India, Latin America, and Africa, where the demand for more affordable smartphones is growing.