Apple Inc. Partners With Foxconn To Start China iPhone Trade-In Program

iphone 8 apple stockElisaRiva / Pixabay

Apple reportedly has plans to roll out an iPhone trade-in program in China, and Foxconn is apparently part of the deal. Tech consumers will be able to bring older iPhones to Apple’s retail stores in China for credit. Manufacturing company Foxconn will purchase and re-sell the used phones as part of the plan. Apple’s spokeswoman declined to comment on the matter.

Apple wants to dominate Chinese market

Apple CEO Tim Cook believes his company is ready to take over China, which he believes will surpass the United States as their largest market. A part of the strategy is to grow the number of stores in the nation by mid-2016. The rumored trade-in program for China is very similar to the current trade-in program expanded in the United States by 2013 when the company started to accept non-iPhones. Recon Analytics LLC  analyst Roger Entner claimed the move helped boost the number of sales. He estimated that nearly half of iPhone buyers traded their older phones last year.

Foxconn is currently one of the main manufacturers of Apple products, and this rumored deal may deepen that partnership. Foxconn (sometimes referred to as Hon Hai Precision Industry Company) garners about half of its revenue from iPhone and iPad sales.

Partnership with Foxconn

In the China program, Apple retail stores will assess the condition of the used iPhones before offering customers store credit. Foxconn will then purchase the phones without Apple obtaining any ownership of the phone. The manufacturer will make any necessary repairs if needed and then sell it online. Foxconn also would sell the phones at brick-and-mortar stores. It may also bring the trade-in program online.

The trade-in sales model works well in the United States. Consumers upgrade older phones for newer models to defray the costs of a new phone. Research company IDC estimated that the once-tepid sales in China spiked 42% last year to an impressive 46.3 million. That amounts to nearly a quarter percent of phones sold throughout the world.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Anna Peel
Anna Peel is a professional writer. In the past four years, she has written for many websites including BSC Kids, Wasabi Media Group, Boomtron, and many others. She currently live in Savannah, Georgia and occasionally blogs about fashion during her free time.

Be the first to comment on "Apple Inc. Partners With Foxconn To Start China iPhone Trade-In Program"

Leave a comment