Apple will influence the tech industry significantly with its ‘buy back’ program
By Quantum Capital Fund
While the technology industry is currently going through a boom period, there are still pressures on the consumer market which may force consumers to think twice before they purchase the smartphone of their choice. Factors such as costs and environmental considerations play a significant role in the modern decision making process.
Companies that can initiate procedures which can circumvent these concerns will be giving themselves a significant advantage in terms of increased sales. Apple seems to have achieved this through a unique program which would improve the relationship between the company and its customers by encouraging improved interaction.
According to a report by arstechnica.com, Apple has teamed up with BrightStar Corporation, a mobile-phone distributor, to begin an in-store trade-in program, according to an unnamed source. The program will help users with aging iPhone handsets transition to the more recent iPhone 5.
The report adds that this isn't the first recycling program from Apple. Apple runs a Web-based recycling service in conjunction with PowerOn Services Inc. The company offers cash for used iPhones, iPads, and Macs.
The program with BrightStar, however, will be available at Apple’s retail locations so that consumers will receive their money quickly and avoid having to deal with packaging and shipping products.
This program will have a significant impact on the market and will offer a number of benefits which could revolutionize the market:
- The program helps consumers upgrade from their older iPhone models to the flagship iPhone 5.
- Apple ensures that there is greater migration to its latest iOS platforms.
- By offering a trade in, Apple is encouraging customers to remain loyal to Apple instead of migrating to other platforms.
- Apple can use the undamaged components from the older phones in new or reconditioned headsets.
- Consumers can be assured that phones will be disposed of in an environmentally friendly manner.
- Apple may qualify for any future benefits that government may offer through future environmental programs.
The most important benefits relate to the fact that Apple is ensuring a greater migration to updated iOS platforms and that Apple is encouraging loyalty by offering benefits which would encourage customers not to move to other platforms.
This may force a trend in the industry. Apple has been under pressure from Samsung to come up with ways in which to decrease the popularity of the South Korean giant’s product and this may prove to be it. Now that Samsung has surpassed Apple as the world’s most popular smartphone manufacturer it will be reluctant to surrender this lead. Therefore it won’t be long before we see Samsung establishing a similar program. Similarly, HTC, Blackberry, Nokia, Sony and Microsoft will be reluctant to surrender any market share which they have had to fight to retain this means that they will also be developing their own programs.