Published on 12:00 AM, March 27, 2015

Apple plans China iPhone trade-in with Foxconn

Apple Inc plans to introduce a trade-in programme for iPhones in China in association with the Foxconn Technology Group, Bloomberg reported, citing people familiar with the effort.

Under the programme, consumers will be able to exchange older iPhones at Apple stores in China for credit against the company's products starting March 31, Bloomberg reported.

Chinese demand for larger-screen iPhones helped fuel Apple's record profit of $18 billion in the final quarter last year.

Apple Chief Executive Tim Cook has said China is poised to overtake the United States as the company's biggest market, and he is working to about double the number of stores in Greater China by the middle of next year, Bloomberg reported.

Under the China programme, Foxconn will buy the iPhones directly, without Apple taking ownership, and repair the devices if needed before selling them on its e-commerce websites such as FLNet and on Alibaba Group Holding Ltd's Taobao online store.

Foxconn, a key Apple supplier, is also in talks to sell the older iPhones in physical stores and may take the trade-in program online in future.

The China plan follows an expansion of a similar program in the United States, where the company has started accepting non-Apple devices, Bloomberg reported.