The inside story of how Apple offers Rs 7,000 for your old smartphone when you buy an iPhone 4 in India

Apple continues to be aggressive in India with innovative schemes, as it attempts to get a bigger chunk of the premium smartphone segment. After launching the iPhone 5 with zero interest EMI scheme, Apple has now started an upgrade offer for the iPhone 4. Under the offer, buyers can bring any “leading” smartphone to a participating retail outlet and get at least Rs 7,000 off on the purchase of an iPhone 4. The retailer has the final say in the price of the old phone but unlike other schemes, Apple suggests that the buyer will get a minimum of Rs 7,000 off. We dug in a bit to find out how it works, read on.

Before getting into the behind-the-scenes stuff, let’s look at the fine print. The offer is not valid on all smartphones and the retailer has the discretion to offer the scheme or not. The buyer only needs to bring the phone and the charger to avail the discount. Buyers will have to give an undertaking that they are the owners of the phone and the balance payment for the iPhone 4 has to be made by a valid credit or debit card. This is a security measure to ascertain the identity of the seller of the old phone as well as a safeguard from the distributor’s side to ensure that the retailer is actually selling an iPhone and not fleecing them.

So when a buyer goes to a retailer and shows him the phone he wants to exchange, the retailer needs to make a quick call on the resale value of that phone. Essentially, the retailer needs to ensure that he gets at least Rs 2,000 as the distributor pays him Rs 5,000 against the Rs 7,000 discount. The retailer is free to sell the old phone and keep the profits. On top of it, the retailer also gets to keep the dealer margin (approximately Rs 1,000) on the iPhone 4. With the dealer making the call on how much he can pay for the old phone, he stands a chance of making much higher margins on selling an iPhone 4 against other smartphones in that price segment.

“This is a really good scheme. At the moment it is only applicable on the iPhone 4 and we hope Apple pushes it to other models as well,” a prominent Delhi-based retailer told BGR India. The scheme, which is under a trial run, is currently available till April 14.

Apple has become aggressive in the past quarter with regular full front page ads in leading national dailies for its iPhones. Its zero interest EMI scheme has proved to be popular and has also been implemented by Samsung. “Earlier, we used to see a lot of momentum for a couple of weeks or so after the announcement of a new iPhone. Now we are seeing that the momentum is lasting for a longer duration,” a person with close links to Apple told BGR India.

“Thanks to these initiatives, people are still interested in even a two-year-old phone like the iPhone 4. Which other brand can pull this off?” a person with knowledge of Apple’s policies in India told BGR India on the condition of anonymity as he was not authorized to speak to the media.



  • Ratheesh

    who needs an iPhone 4 now? Apple has to come up with iPhone 5!

    • http://apple.com iSheep

      Well if you go by that logic, iPhone 5S is due in a couple of months. iPhone 4 is still a desirable phone when you can get it for around 20k

  • Biswajit Chatterjee

    the fuck .

  • kris

    Buy the grand for 19k, sell your old phone on olx/quikr, you get a much better phone than the 2 year old Iphone. A poor deal for customers. Show me something else apple. We are not fools!!!

    • Prateek

      Bandar kya jaane adrak ka swad….how can u compare fucking Samsung Gran with iphone4. Use both these phones for a day and you will know the difference

      • lemba

        Prateek… Obviously grand is better than iPhone 4. You can’t do anything else than playing game,video,music and photos.. Samsung has android.. And u know android is a monster. You can’t attach doc files using ios while forwarding any email. You can’t upload ur resume on jobsite also.. There are many more things on which apple fails to work… Its just fuckin shit

      • lemba

        Prateek… Obviously grand is better than iPhone 4. You can’t do anything else than playing game,video,music and photos.. Samsung has android.. And u know android is a monster. You can’t attach doc files using ios while forwarding any email. You can’t upload ur resume on jobsite also..

        • krishna yadav

          U know what i make my resume on iphone and send to the website via email
          What u need is pages for ios awsome app

      • lemba

        Prateek… Obviously grand is better than iPhone 4. You can’t do anything else than playing game,video,music and photos..

      • Abhi

        Go fu$k yourself . You noob you dont know that grand is better than iphone 4 . Apple will only get profit from this scheme because of people like u . Go buy some nokia

  • Ashish Pandey

    Wonderful Story Rajat,
    You are creating new parameters in technology reporting. Keep rocking.

    • MKD

      There is a mistake in your comment. The correct version will be

      Wonderful Story Rajat,
      You are creating new parameters in apple reporting. Keep rocking.

  • Aamir Nazir

    can i get it in installment

  • Shah

    Im interested in this deal and where i have to go to xchange in istore or any other retailer ??? plz reply anyone

  • http://thewaseem.wordpress.com/ Waseem

    Wonderful story, Rajat.

    I would like to know what would that ‘leading brand’ phones define? I’ve got a Samsung Galaxy Y Duos which is 2 months old for exchange, and would I be able to go ahead with the iPhone 4 purchase? Also, what’s the cost minus the discount?

    TIA
    Waseem

    • http://www.bgr.in Rajat Agrawal

      You should be able to get the discount. Mind you, it is the sole discretion of the retailer.

  • matthew

    Apple’s way of dumping e-waste to India.

    • Abhi

      Agree with u

      • amit

        I agree too…

  • Tarang

    is samsung wave 3 applicable in d scheme.

  • Abhi

    We all should not buy this . 5s is coming in just few months and you people want to buy iphone 4 .Apple should be giving this scheme on iphone 5! There are more androids and windows smartphones better than this iphone 4 shit for a lesser price , why not buy those?

  • Nitesh

    Smartphonecashin definitely pays the highest values from all the cell phone trade-in programs.

  • vivek d pandit

    I wanted to buy iphone but i want to sell my nokia phone

  • Jacob

    I’ve been an android user since 2011..I used samsung galaxy ace in the beginning and then I bought Samsung Galaxy S II last year..I tried my friend’s iphone severel times and what I found was that iOS is better than Google’s Android..The thing is,android phones will get stuck once it gets overheated which happens almost every day whereas iphones are free from this problem..So I’m planning to upgrade to Iphone 5..

  • Jacob

    I’ve been an android user since 2011.I bought Samsung Galaxy S II last year.I tried my friend’s iphone severel times and what I found was that iOS is better than Google’s Android.The thing is,android phones will get stuck once it gets overheated whereas iphones are free from this problem..So I’m planning to upgrade to Iphone 5..

  • Jacob

    I’ve been an android user since 2011.I tried my friend’s iphone and what I found was that iOS is better than Google’s Android.The thing is,android phones will get stuck once it gets overheated whereas iphones are free from this problem..So I’m planning to upgrade to Iphone 5..

  • Jacob

    The thing is,android phones will get stuck once it gets overheated whereas iphones are free from this problem..So I’m planning to upgrade from Galaxy S II to Iphone 5..

  • aarush choudhary

    i wanted to buy iphone.