According to Bloomberg, Apple will be introducing a trade-in program for older iPhone models with the aim of encouraging users to upgrade to the latest iPhone model, the iPhone 5.
The program, Â a first for Apple that already offers a web-based recycling service for used iPhones, iPads or Macs, lets users receive money for their smartphones.
Trade-in programs are used to boost sales of new, and expensive, devices in mature markets. According to the report, selling used iPhones in emerging markets can encourage first time smartphone users to commit to the Apple brand until newer models become available which, says Israel Ganot, CEO ofÂ Gazelle Inc.,Â is a rapidly growing market.
Apple has teamed up with mobile phone distributor Brightstar, to handle the exchange. Brightstar runs similar programs for service providers AT&T and T Mobile.
The new program aims to regain market share for the company as it attempts to compete vigorously with rival Samsung that has recently introduced new smartphones to market including the Galaxy S4 mini and Galaxy S4 Active.
Because the program has not been officially announced, Apple and Brightstar have yet to comment.