Mike Peterson
Apple trade-in partner Phobio is allegedly giving lower-than-expected trade-in values to customers because of device defects that apparently only they can see.
Phobio is a Georgia-based company that offers white label trade-in services to other companies, including Apple. However, an investigation by The Verge suggests that the company appears to have a questionable online reputation.
Several Apple trade-in customers that Phobio slashed the trade-in value of their Macs because of a display that has "3 or more white spots." Those customers said they did not notice the white spots themselves before sending their devices in, and said Phobio failed to provide any evidence that the defect existed.
The Verge reportedly inspected one of the supposedly defective devices and was unable to find any white spots on the display or other signs of damage. Although the publication personally heard from a handful of customers, it adds that there are "scores of other instances" of similar situations online. In addition to Mac trade-in values, there are also complaints about iPhones, iPads, and other devices.
In a statement, Phobio declined to directly comment on the story but said that it aims to give "full and fair value" to customers for their trade-ins.
"We carefully assess each device sent to us, and only change the initial quote if the device we receive or its condition differs from what was initially indicated by the customer. We document our findings at every step of the way with photos that are shared with the customers," the company said.
Phobio does allow customers to refuse revised trade-in offers and will ship the device back to them free of charge.
Although The Verge's sample size is small, there do appear to be a number of complaints about Phobio spread across the internet. The Better Business Bureau is also advising consumers that Phobio has "a pattern of complaints" against it. The company has a 3.1 rating on TrustPilot, and there does appear to be an uptick in complaints in recent months.
Apple ">switched to Phobio as a primary trade-in partner back in 2017 after dropping PowerOn. AppleInsider has attempted to get more details out of Phobio regarding its assessment policies for just over two years, with no success.
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Charles Martin
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13 Comments
A classic case of false savings through outsourcing. The bean counters never factor in the risk of reputations damage.
Have done a couple of test wrt trade in value for Apple products, and I get around 2-3 X more selling through other channels. Doesn't make sense at all to trade in. Also checked out a couple of sweatshops selling "refurbished" or traded Apple products. Not worth it at all.
Face to face + receipts.
Most of the time I use Ebay for best trade-in value, but honestly it's a PITA. Especially when it was still using PayPal for a second set of fees. Apple trade-ins are significantly simpler. I traded in a two-year old iPhone X for $400, coulda got more on Ebay but damn it was so simple. But for my Watches and iPads especially, I still use Ebay.
I've used Phobio via Apple many times over the last year with great success… until the last time. For some reason a flawless iPad Air was deemed worthless. Their pictures showed severe damage to the exterior housing. I had it shipped back after taking screenshots of the images (they don't let you see those images again after you agree to have it shipped back) so I could verify the images they showed me online matched up with the serial number on the box. It all matched. My best guess is a shipping issue or an employee issue since it doesn't profit Phobio to ship and return perfect good products to customers on their dime instead of reselling them.
02 in the UK which is one of the largest telecoms and part of Telefonica once tried to stiff me like this. Unfortunately for them they played with the wrong person and I informed them that I had recorded and photographed the device, it’s serial number and the entire process of packaging it for shipment and told them that they were bare faced liars. I was supposed to get a very high trade in for effectively a device in mint condition and they alleged it was in very bad condition with dents and scratches and it was in the fourth category which was the lowest. I sent them photos, and not only did they immediately change their tune and give me the full amount, but they gave me I think £150 compensation. I reported them to trading standards, plastered my story and photos everywhere to inform others and made an official complaint with them personally. As if these greedy pigs don’t make enough through honest means.