Apple cuts iPhone 5 Trade In Price as iPhone 6 Nears

The iPhone 5 trade in price is $45 less at Apple, offering consumers just $225 for the nearly two-year old iPhone. The price drop comes as an iPhone 6 release date is less than 3 months away, according to rumors. iPhone 5 trade in values declined over the last 10 to 12 months, with a major drop near the iPhone 5s release in the fall.

The new iPhone 5 trade in value is the maximum Apple will pay for the aging smartphone. While this is still enough to cover the cost of a new iPhone 5s, the price will likely decline in the next several months as the rumored iPhone 6 release date approaches.

Apple chops $45 off the iPhone 5 trade in price in the months leading up to a rumored iPhone 6 release date.

Apple chops $45 off the iPhone 5 trade in price in the months leading up to a rumored iPhone 6 release date.

An Apple iPhone 6 release date is rumored for September 19th, by multiple sources and for sometime in the month of September by many more. Unlike the iPhone 5s, which did not offer a new look, rumors suggest Apple plans a full redesign for the iPhone 6. This includes a larger screen, thinner body, rounded corners and more curved edges. We also expect to see two iPhone 6 models this year with 4.7-inch and 5.5-inch screens.

Read: How to Sell an iPhone

The iPhone Reuse and Recycling program is Apple’s official iPhone 5 trade in service, which also accepts other Apple products. Shoppers can trade for an Apple gift card to use towards anything Apple Stores sell. There is not an option to get cash, like Nextworth, Gazelle and others offer.

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iPhone 5 trade in prices.

iPhone 5 trade in prices.

Apple’s iPhone 5 trade in price cut is a drop of $45 from last month’s $275 trade in value, which was a generous amount for an old iPhone. iPhoneinCanada noticed the price drop, which is live in Canadian and U.S. Apple Store locations. Although Apple does not give any reason for price drop, the iPhone 5 is an aging device that will soon be replaced again by the iPhone 6.

During the last three iPhone release dates, the value of iPhone trade-ins fell 5-20% within weeks of the announcement. The best time to trade in an older iPhone is actually a week or two before the iPhone 6 announcement, which may take place in early September. Apple requires users to trade in the iPhone 5 at the time of the switch, but other services offer up to 30-days to lock in a price.

NextWorth and Gazelle offer similar prices, with a 64GB AT&T iPhone 5 commanding $230 on Gazelle and $189 on NextWorth. Users that have the time to sell a device on their own can earn roughly $100 more than using a trade in service through Apple, or those listed above.

Read: 50 Amazing iPhone 5 Cases

Less than a month before the iPhone 5s release in 2013 a used iPhone would go for as much as $476, double the maximum paid for an iPhone 5 today. If you are willing to sell on eBay or Craigslist the price can go higher than $225. A 64GB iPhone 5 on AT&T will easily sell for over $300 on eBay in good condition.

iPhone trade in values drop the most right before a new iPhone announcement.

iPhone trade in values drop the most right before a new iPhone announcement.

The iPhone 5 remains a very popular smartphone, and the go to cheap iPhone of choice for many shoppers that want an affordable iPhone that is not made of plastic. Apple continues to offer updates for the iPhone 5 including iOS 7.1.2 which runs smoothly for most users. The iPhone 5 is also scheduled to see an iOS 8 update this fall, and based on history it could see another major update in 2015.

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For iPhone 5 owners that want to know how their iPhone compares to the iPhone 6, this look at the rumors will help users get a better idea of what to expect if they plan to upgrade this fall. Although only rumors, the number of leaks and analyst commentary is enough to deliver a good idea of what Apple plans for this fall.

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