What actually happens when you trade your iPhone back to Apple

Buying a new phone can be pretty expensive. I mean, some devices can be priced the same as a month’s worth of rent.

So, those savvier-minded people might look around to find the best deal if they want a shiny iPhone 15. Or, at how to make use of their old one to save some cash.

Of course, a popular way of doing this with iPhones is to trade them back to Apple.

The tech company offers Trade In, where you can get offered a chunk of cash for your device to apply towards getting a new one.

Apple say you can get from £35 to a whopping £630 for eligible iPhones, with Trade In available both online or in store.

But what happens to all those iPhones that get sent off to the company?

You could get cash for a new phone. (Getty stock photo)

If it’s in ‘good shape’, Apple will help get it to a new owner as a second-hand device. Or, ‘if it’s seen better days’, it will be recycled.

The Wall Street Journal took an inside look into the industry to see the process of trading in iPhones.

The outlet visited U.S Mobile Phones (USMP), which is one of the partners used with over 2.5 million trade-in devices processed last year – most of them being Apple products.

Reporter Joanna Stern followed an iPhone 11 on its trade-in process, with four key steps: data erasure, cleaning, grading and kitting. Essentially, this is how they prepare your phone to be used up again and in what way.

Stern explained: “Two-thirds of the phones that arrive at the USMP facility get data-wiped, cleaned up and sold off to wholesalers, often overseas.

Recycling phones mean they can be reused. (Getty stock photo)

“The other third goes to its sister company, Back in the Box, to be cleaned up, refurbished and sold to buyers on Amazon or Back Market, a popular second-hand-phone marketplace.”

The iPhone 11 ended up being listed for resale at $350 (£281) – meaning a profit was made as the customer will have had $200 (£161) for trading it in.

But, there are some expenses.

Back in the Box CEO Ari Marinovsky explained that even though you may calculate Back in the Box and USMP making up to $100 on that phone, the cost to refurbish the device and Back in the Box's 10 percent cut eat into the profit.

On top of that, there are plenty of battered phones that end up being sold on at a loss.

Apple also explains what happens if you want to trade in and your phone doesn’t quite meet the requirements for credit: “If your device isn’t eligible for credit, we’ll recycle it for free. It’s a great deal for you and the planet.”