If you’re one of the more than 1 million Apple enthusiasts who pre-ordered an iPhone 4S this week, you’re likely looking to ditch your old phone.
The day that Apple unveils a new iPhone is like the Black Friday of cell phone trade-in services. Gazelle, one of the best known of the so-called “recommerce” sites for electronics, said that it received a phone every six seconds during Apple CEO Tim Cook’s presentation on Oct. 4.
As sales of expensive smartphones grow rapidly, trade-in sites have also risen in popularity. Their services give customers the opportunity to make some cash off their old devices, which shoppers can use toward their shiny new handsets. At one point last week, Gazelle had offered up to $284 for some iPhone 4 trade-ins.
But what happens to your trade-in once you ship it to Gazelle, ReCellular, NextWorth, Amazon Trade-In, or any of the other recommerce sites out there?
First, cell phones are inspected for wear and tear and to see whether they still work. Damaged phones are assessed for salvageability.
All phones then go through a memory wipe. Each trade-in company said it wipes memory in two steps to ensure your data is completely erased from the phone. If the phone doesn’t work, the companies will physically destroy its memory.
“We make sure there are no late-night texts still on your phone,” said Joe McKeown, vice president of marketing at ReCellular.
Where old iPhones go to die
Phones that are in excellent shape are typically either sold directly to consumers on the trade-in companies’ sites, or they’re hawked on eBay (EBAY, Fortune 500) or Amazon. Gazelle receives so many iPhones that it tends to sell Apple’s smartphones to wholesalers, since the recommerce company lacks the manpower to sell all of them on eBay or Amazon.
But it’s in the traded-in junk where it starts to get interesting.
Source: CNN Money
By David Goldman