Do you know nearly one-fourth of iPhone users stick to their devices for about 1 to 2 years before considering an upgrade? And, the iPhone trade-in program by Apple, Inc. (NASDAQ: AAPL), which has become a cornerstone of its business strategy, is a game-changer in influencing the upgrade decisions of the global iPhone user community. What’s truly fascinating is how, each year, when Cupertino’s tech juggernaut releases new iPhone models, the trade-in prices for all its previous models undergo a thrilling change.
With the launch of the iPhone 15 series on September 12, 2023, Apple is turning up the excitement by offering tempting trade-in values for the older generations of iPhones – namely, the N-2 (newest generation minus two) and N-3 (newest generation minus three). This means that if you own any of the iPhone 13 series or one from the 12 series, you’re in for a treat.
Trade-In Bonanza for iPhone 12 and 13 Series
As Apple has launched the iPhone 15 lineup, featuring the iPhone 15 Pro Max, iPhone 15 Pro, iPhone 15 Plus, and iPhone 15, the existing iPhone users with models older than 2022 (iPhone 14 models) are most likely to jump on the upgrade train. This annual “iPhone upgrade” tradition seems to repeat like clockwork.
It appears that Apple’s game plan is crystal clear: coax more and more users into the irresistible allure of the new iPhone 15 models. To sweeten the deal, the company seems to be putting the spotlight on offering some seriously enticing trade-in values for those N-2 and N-3 models, which encompass the iPhone 13 series and iPhone 12 series. Among these, the N-2 models have witnessed remarkable year-over-year trade-in value boosts, ranging from a respectable 9% to an eye-popping 28% for this year’s launch.
When the iPhone 13 debuted in 2021, the trade-in value for the premium-tier iPhone 11 Pro Max, which was two generations old at the time, stood at $500. In the following year, when the iPhone 14 series was launched, there was a slight 6% increase in the trade-in value for the two-gen-old iPhone, premium-tier iPhone 12 Pro Max, reaching $530. What’s worth noting is that in 2022, Apple strategically chose to boost the trade-in value exclusively for the two-generation-old iPhone 12 Pro Max, signalling a clear commitment to serving its premium customer base.
In a surprising twist this year, trade-in values for N-2 devices have surged significantly when purchasing the iPhone 15 series. The trade-in value for the iPhone 13 Pro Max, originally priced at $1099 for the 128GB variant, increased 9% to reach up to $580.
However, what truly stands out is the surge in trade-in prices for slightly more budget-friendly models from two generations back: an up to 12% jump from $430 to $480 for the iPhone 13 Pro (launched at $999), a significant up to 16% boost from $320 to $370 for the base model iPhone 13 (launched at $849), and an impressive up to 22% rise from $250 to $320 for the iPhone 13 Mini (launched at $749).
The above trend indicates that individuals upgrading from the iPhone 13 Mini and the base model to the new iPhone 15 series are in for substantial gains, as they stand to recover over 55% of the original purchase price by trading in their older devices. Moreover, users of the iPhone 13 Pro and Pro Max who opt to make the leap to the iPhone 15 series and trade in their current devices will also find themselves receiving excellent value for their investment.
Apple’s calculated decision to substantially increase trade-in values for N-2 iPhone models clearly indicates the tempting incentives they’re offering to encourage users to upgrade to the latest iPhone 15 series. This not only makes financial sense for iPhone users globally but also represents a bold step toward ushering its loyal customer base from the past into the era of cutting-edge technology, all while shaking up the status quo!
In fact, the increased iPhone trade-in prices might just prove more alluring to customers than carrier deals, especially for those not locked into the highest-tiered phone plans. This change in approach could steer more customers towards purchasing unlocked devices directly from Apple, rather than being swayed by carrier promotions. It’s a strategic twist that could reshape the purchasing habits of iPhone enthusiasts in the coming years.
Apple Suggests Patience for iPhone 14 Users
Apple is advising iPhone 14 series users a bit of patience before taking the plunge into the latest models. In recent years, trade-in values for the previous-generation (N-1) Apple iPhones have taken a noticeable tumble.
For instance, when the iPhone 13 series made its debut in 2021, owners of the older iPhone 12 Pro Max were offered a generous trade-in deal of up to $790. However, with the launch of the iPhone 14 series last year, that trade-in value dipped to $720 for the iPhone 13 Pro Max. Surprisingly, this year’s launch of the iPhone 15 has pushed trade-in values even lower, with the iPhone 14 Pro Max now sitting at $650. That’s a significant 17.7% decrease over the past two years.
Similarly, for iPhone 14 Pro and basic model users can trade in their devices at $570 and $430, respectively, down from $640 and $530 in 2021 during the time when the iPhone 13 series became the talk of the town with its launch. The only exception to this trend is the N-1 mini/plus model (iPhone 14 Plus in this case), whose trade-in price has increased, albeit exclusively for this year’s iPhone 15 launch.
In a Nutshell
The nuanced variations in trade-in values during the launch of new iPhone models offer a glimpse into the strategic acumen of Tim Cook and his team at Apple, Inc. It’s evident that the company is keenly attuned to the dynamics of the smartphone market and users’ purchasing habits.
Apple recognizes that users with iPhones older than the iPhone 14 series are most likely in the market for an upgrade. This inclination is primarily driven by the fact that over the past couple of years, most premium smartphones have come up with cutting-edge technology, from lightning-fast processors and AI-powered gaming experiences to enhanced camera capabilities and more. It is no wonder users are looking for that next level of innovation.
Hence, Apple’s deliberate decision to provide a substantial boost in trade-in values for two and three generations of iPhones serves a dual purpose. Firstly, it incentivizes loyal Apple users to stay within the Apple ecosystem and embrace the latest iPhone 15 series. Secondly, it acts as a barrier to the allure of premium Android smartphones from competitors like Samsung, Xiaomi, and others.
Without such a notable trade-in value increase, a considerable number of users might hesitate to upgrade to the iPhone 15 series, or worse, explore alternatives in the Android market.
As Apple invites iPhone users to ponder their upgrade paths, the trade-in program becomes an intriguing chessboard of strategy and excitement. So, if you are planning to buy iPhone 15 models, the best time to act is now. Waiting may mean missing out on the prime trade-in value for your two or three-generation old iPhone.
