In a move that seems to be a precursor to Apple's iPhone 5S launch, the company has confirmed a new iPhone trade-in program that exchanges your old smartphone for an Apple gift card. The catch-- you'll have to walk out of the store with a brand new iPhone on contract that day.
Apple reportedly told CNBC's Jon Fortt that the new trade-in program will launch nationwide on August 30. The new effort is similar to Apple's current exchange policy, but differs in the sense that you'll be required to purchase a new iPhone with a two-year contract. Details on the program are scarce, but the CNBC report lines up with rumors that have cropped up earlier this week. According to a previous report from TechCrunch, the company would offer $250 in store credit for a 16GB iPhone 5 in good condition. This credit, in turn, would be put toward a new iPhone 5S or iPhone 5C.
The news that Apple plans to launch an iPhone trade-in program comes just about 10 days before the company's purported iPhone event. Apple is expected to unveil the iPhone 5S and low-cost iPhone 5C on Sept. 10, although this has yet to be confirmed.
While this program may be new for Apple, trade-in deals are fairly common. Gazelle, for instance, offers up to $315 for an iPhone in good condition. When we compared trade-in deals for the iPhone 4 back in 2012, we found that Amazon shelled out up to $415 for your old iPhone. We're still waiting on more details from Apple, but the company may have to sweeten the deal to allure customers from more appealing trade-in options.