Chinese iPhone and iPad trade-in program encounters weak public reception
Apple's just-launched Chinese iPhone and iPad trade-in program is already meeting with a tepid response in the country, particularly in light of the prices of new devices and higher trade-in values at third-party recycling companies.
On Wednesday, ZDNet cited the example of a Shanghai woman interviewed by Sina, who said she was "stunned" to learn that she could only get 250 yuan, or $40, for an iPhone 4. The company is also offering a maximum of 500 yuan ($80) for an iPhone 4S, or 1,500 yuan ($240) for an iPhone 5s.
Those values are minuscule next to what some third parties are offering for the same hardware. Sina noted that even a 16 GB iPhone 4S will often fetch 1,100 yuan ($176), while a 16 GB iPhone 5s is worth about 2,900 yuan ($463). Some of the people interviewed by the agency said they would prefer to sell to these alternative shops, especially since they pay in cash, whereas Apple is only offering store credit.
China is one of the most expensive places in the world to buy an iPhone, even when considering that devices are sold contract-free there. A 16 GB iPhone 5s for example is 4,488 yuan, or $718. In the US, the same model is $549 unlocked. An iPhone 6 Plus is well out of the general public's price range, costing at least 6,088 yuan ($973).
Although the claim hasn't been confirmed, Bloomberg has previously said that Foxconn is participating in the Apple trade-in program by repairing and reselling devices. The program is presumably generating profits for both companies, although Apple Store workers reportedly said that the company's main incentive is protecting the environment.
11 Comments
I think it's awesome that there already exists a robust trade-in network in China that provides much higher prices than what Apple/Foxconn are offering. Likely the Apple trade-in program will capture iPhones and iPads that have been damaged, as those would be less likely to draw the higher prices through the 3rd-party trade-in channels. So let Apple/Foxconn take back the shattered displays, water-damage, and otherwise wrecked iPhones and iPads, repair those and get them back into circulation. And let the others recirculate the ones that are in decent working order. In the end, more iPhones and iPads in use means more app and media sales and fewer people walking around using Android crap. Everybody wins. Well, everybody who counts.
The article's iPhone retail price comparison between China and the U.S. is grossly misleading. Apple's quoted retail prices in China already have added in the 17% government mandated tax in their retail pricing for all their products. (This is why many people go to Hong Kong to purchase Apple products where there is no sales tax.) Factoring this in, there is only a $50 difference between Apple's actual China and US pricing for the base model.
Why on earth would AI post anything from ZDNet? One of the most Apple hating tech sites out there. And totally in the back pocket of Microsoft.
The article's iPhone retail price comparison between China and the U.S. is grossly misleading.
The article never said that Apple jacks up the price of the iPhone in China. Read carefully. It says that China is the most expensive place to buy an iPhone, which doesn't contradict anything you said.
The article's iPhone retail price comparison between China and the U.S. is grossly misleading. Apple's quoted retail prices in China already have added in the 17% government mandated tax in their retail pricing for all their products. (This is why many people go to Hong Kong to purchase Apple products where there is no sales tax.) Factoring this in, there is only a $50 difference between Apple's actual China and US pricing for the base model.
We have 23% Vat in Ireland and a iPhone 5S 16GB is still $89 cheaper here than that quoted price in China. Import tax?