About Apple Upgrade Program
In this way, the Upgrade Program allows Apple to better maintain the supply of iPhones on the open market, which means Apple has better control on resale value and pricing. Apple has more access to refurbished products, which it can sell to emerging markets at costs that may actually be lower than what third-party resellers would pay.
From cradle to grave: Vertically integrated efficiency
Finally, there’s huge potential upside for Cupertino if the the Apple Upgrade Program takes off: Recycling.
It takes a lot more work (read: resources, energy, money, time) to scout, mine and refine 7000 Series aluminum than it does to recycle it. Let’s get back to that logistical machinery. Tim Cook didn’t rise to the rank of CEO because he was some MBA that looked good in a suit. You may recall that Cook ran Apple’s worldwide operations for more than a decade; first as an SVP and then as COO, before assuming the top job at Apple. Regardless of his title, Cook’s role was to determine how to most efficiently build and source the necessary materials. The Apple Upgrade Program falls directly in line with that mission.
The convenience of getting everything done over the store or online will win over time for a lot of customers and the extra perks of the upgrade program will be an added bonus and will serve to move the needle in favour of it. Also, as the article mentions, Telcos will be pushed to add serious value and quality of network than before. I am no accountant, but this might also be more tax effective for individuals and businesses.