Apple Expands China Presence & Increases Revenue With iPhone Trade-In Program

Apple is reportedly going to work with Foxconn, one of its top manufacturers, to help boost their sales in China. Their collaboration will work to introduce a trade-in program that will permit iPhone users in China to have their gadgets traded at an Apple Store.

China holds a lot of lucrative opportunities for the American company, particularly because of its enormous population and consistently increasing middle class. These findings were evidenced by the positive incline of their sales in the country, as confirmed by Reuters. According to the report, China may even reach a point where it replaces the United States as Apple’s biggest market.

In the fourth quarter of 2014, alone, Apple has generated $16.1 billion of revenue in China. This among represents a huge percentage of the company’s total revenue of $74.6 billion. According to CNET, the revenue of Apple in the country was up 20% year after year and increased 66% more than what was generated in the third quarter that same year.

After a staff member from the Apple Store determines the value of their device, the consumer will get trade-in credits that they can use for the program. According to Bloomberg, instead of Apple, Foxconn will be purchasing the iPhone unit from the client.

Foxconn will then apply some changes to the unit and re-sell them through Foxconn’s own e-commerce website in China, which includes one on the Alibaba Taobao store. According to the report, Foxconn might also decide to bring in its trade-in deal to the Internet at some point.

Although this deal seems to be centered on Apple’s desire to increase its revenue in China, it is actually also quite lucrative for Foxconn. With this new deal with Apple, Foxconn now can get more profit from the selling of used iPhones. However, it remains unclear whether or not Apple will be sharing in the proceeds.

To expedite operations for this strategic move to further increase sales in China, the tech firm is reportedly gearing itself to launch its iPhone trade-in program sooner. According to the report, the roll out may begin as soon as March 31.