Apple offers new iPhone trade-in program

Apple now lets customers trade in their old iPhone for store credit starting Friday.

If your old iPhone is slowing down or if you're ready for an upgrade, Apple might have a solution for you.

On Friday, the company began offering a new trade-in program that gives customers store credit for their old iPhones that can be used toward the purchase of a new phone. Customers can expect between $120 and $250 for each non-water-damaged device they turn in to an Apple store. 

"iPhones hold great value. So, Apple Retail Stores launched a new program to assist customers who wish to bring in their previous-generation iPhone for reuse or recycling," according to Apple's statement e-mailed to the Monitor. 

But the wording is important here: unlike other Apple trade-in deals, where you mail in your old phone and receive a gift card in return, this new program lets customers swap in their iPhone at an Apple store, but the gift card must be used toward the purchase of a new iPhone. That means you can continue with your old contract, get a new contract, or get an unlocked device. All options turn a nice profit for Apple.

If you're a devoted Apple user, this might be a good deal. The company is likely to unveil two new iPhone models: the 5S and the 5C on Sept. 10th, and if you want an upgrade, why not cut off some of the cost by trading in your old device? 

"If you look at Apple's overall business model, it's not just about the devices but the overall universe," Todd Day, a senior industry analyst for Frost & Sullivan told CNBC. Offering a competitive trade-in program helps ensure those customers stick around, according to CNBC. Since new iPhone upgrades usually run at $199 for customers, Apple's $120 trade-in minimum could be a major incentive to keep customers in its ecosystem.