iPhone Air’s $200 premium disappears when you trade it in

iPhone Air’s $200 premium disappears when you trade it in
Photo: 9to5Mac

Following the iPhone 18 Pro and iPhone Duo announcement this week, Apple has started accepting iPhone Air and iPhone 17 trade-ins for credit. However, the iPhone Air offer is a bit of a sore spot, especially after this week’s price increases. Apple usually waits for a new version of an iPhone to come out before accepting trade-ins. That’s not the case for the iPhone Air and iPhone 17. There’s no iPhone Air 2 or iPhone 18 yet. We expect to see these new models early next year at the soonest.

Trade-In Eligibility for Current-Generation Models

Apple does want to give iPhone Air and iPhone 17 users a chance to upgrade to an iPhone 18 Pro or iPhone Duo. For that reason, both models still being sold by Apple without newer versions are eligible for trade-in. This marks a departure from Apple’s typical trade-in policy, which usually aligns with new device launches. The company is extending trade-in support to maintain upgrade momentum despite the absence of direct successors. Users can now trade in these models even as they await next year’s expected releases.

iPhone 17 Trade-In Value After Price Adjustment

For the iPhone 17, which now starts at $899 after a $100 price increase this week, Apple offers up to $585 in trade-in credit. This valuation reflects the device’s current market positioning following the recent price adjustment. The trade-in amount represents approximately 65% of the iPhone 17’s new starting price. Apple’s pricing strategy appears to balance retail adjustments with trade-in incentives to encourage upgrades.

iPhone Air Trade-In Value Discrepancy

iPhone Air also saw a $100 price increase this week, bringing the starting price to $1099. And what does the $200 premium over the iPhone 17 net you in trade-in? The same $585 offer. This creates a notable inconsistency where the higher-priced iPhone Air receives identical trade-in valuation to the lower-cost iPhone 17. The trade-in value for iPhone Air now covers roughly 53% of its increased retail price, compared to 65% for the iPhone 17. This disparity has drawn criticism from users who expected proportional trade-in value relative to the price increase.

Analysis of Trade-In Valuation Logic

Apple’s trade-in value table almost makes it look like a $100 error. In reality, Apple is probably basing it on demand and the value of parts. That’s too bad, considering the iPhone Air uses almost the same chip as the iPhone 17 Pro. The valuation suggests component commonality and market demand are being weighed more heavily than retail price differentials. Despite sharing core hardware with the iPhone 17 Pro, the iPhone Air’s trade-in offer does not reflect its premium positioning. This approach may prioritize inventory turnover over perceived device value in Apple’s trade-in calculus.

Summary of Value Changes for iPhone Air

To recap, iPhone Air’s value went up $100 for new customers. However, iPhone Air’s trade-in value, at least according to Apple, is the same as a $200 cheaper model. Not great, Bob. This outcome means early adopters of the iPhone Air face diminished upgrade incentives despite paying more upfront. The trade-in policy effectively reduces the net cost advantage of choosing the iPhone 17 over the iPhone Air for upgrade-seeking users. Apple’s decision highlights a trade-off between stimulating upgrades and maintaining consistent trade-in economics across its product lineup.

Read original on 9to5Mac →