U.S. retailer Best Buy started offering iPad trade-ins to its consumers.

On Friday and Saturday, you can bring in your iPad 2 or the third-generation iPad to any Best Buy outlet and receive a minimum of $200 of Best Buy credit in exchange. If your iPad is in better than regular working condition, Best Buy says you may receive additional cash.

iPads with cracked screens or with water damage will not be accepted.

However, consumer electronics trade-in Web site Gazelle accepts broken iPads for a cheap price. A broken Wi-Fi, 16GB model should get you about $60 on the site. After you hand in your iPad to Best Buy, the company either recycles the tablet or resells it.

Gazelle and other trade-in programs do the same thing. However, Gazelle CEO Israel Ganot said that even broken iPads are worth something.

"We sell the broken items to repair shops that will repair the devices and then resell them as refurbished," Mr Ganot told ABC News. "There is no reason not to accept broken iPads if they can be repaired."

In the later part of June, the retailer offered a free iPhone trade-in deal wherein you bring in your old iPhone 4 or 4S, and you can get a new iPhone 5 for free.

The recent iPad trade-in of Best Buy suggests the imminent release of the rumoured iPad 5 with the same iPad Mini design.

Soon, consumers may expect Apple's own trade-in programme which will offer discounts to consumers.

Latest reports claimed that Apple has finalised the specs and features of the upcoming iPad 5 for mass production of the tablet. iPad 5 is reportedly to commence production in August for its supposed September/October launch. Based from previous releases, Apple announces new products several weeks ahead of a release.

According to Mobile China Union, Apple is preparing the iPad 5 production to start in August, reaching volume production. This would allow Apple to shift the iPad 5 release date around without major gaps in inventory associated with a new iPad release. This report does not include any iPad 5 specs, but another leak sheds some light.

This is in line with the chatter from Apple suppliers regarding better iPad 5 battery, a September launch and suppliers that are ready to deliver enough components to meet the projected iPad 5 release day demands. This set of rumours comes from DigiTimes which shares supply chain chatter and gossip. While the publication is not always spot on, it does deliver a fast track to insider news and this rumour lines up with others.

According to earlier rumours, the iPad 5 specs could include,

7.5-8.0mm - 15% thinner than the iPad 4

500 grams - 25% lighter than the iPad 4

9.7-inch display with GF2 touch technology from the iPad mini

Apple A7X processor

5MP rear camera, HD front camera, similar to the iPad 4

Design similar to the iPad mini

8,500-9,000mAh battery - 25% to 30% smaller than the iPad 4

The iPad 5 is rumoured to have no bezels, and the whole form factor has been made sleeker. Horowitz believes this design indicates that Apple will be calling on Sharp's IGZO screen technology. Sharp, however, according to Horowitz, has been struggling, and its ability to deliver components on time will play a key role in the release of the next iPad.