This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

iPhone 5 Creates Trade-in Frenzy

Stocks in this article: AAPL GOOG RIMM

NEW YORK ( TheStreet) - Weeks before Apple's (AAPL) iPhone 5 was rumored to be officially announced, Josh Kwolinski was already prepared.

The student and part-time AT&T (T) employee from Sacramento, Calif. had traded in his iPhone 4 to an online reseller called Gazelle, which offered him $300 for the device. He plans to use the funds to purchase Apple's fifth generation smartphone after its launch on Oct. 4.

"I'm an Apple nerd," Kwolinski said. "I deal with phones all day every day and constantly see problems with other phones, but not the iPhone."

Kwolinski is just one of thousands looking to trade in their smartphones in anticipation of the iPhone 5 release.

The device, expected to be a lighter, slimmer version of its predecessor with a better camera and faster processor, has created frenzy among consumers who are ditching their old phones in droves.

Gazelle, a Boston-based consumer electronics reseller, has seen a 20% increase in smartphone trade-ins across all platforms in the last three weeks when rumors about the iPhone 5 launch date started circulating.

Used iPhones have gained the most traction, said Gazelle's chief gadget officer Anthony Scarsella, who has seen trade-ins double within the last two weeks.

In the last week alone, around 4,500 people tried to sell their iPhones, up nearly 30% from the prior week. And after press invites for the iPhone 5 launch event in Cupertino, Calif. started circulating across the Web, one iPhone was being traded in on Gazelle every 10 seconds.

"It's been a lot more aggressive this time than when the iPhone 4 launched," he said. "There's been more hype around the phone since it got delayed."

Gazelle predicts more than 20,000 people will try to sell their used phones on the site following the iPhone 5's launch -- more than 10 times what it saw with the iPhone 4.

Gazelle, which pays consumers around $170 for a 32GB iPhone 4 in good condition, is just one of several sites looking to help consumers sell their unwanted electronics like phones, digital cameras and laptops. Smaller companies like Billerica, Mass.-based NextWorth and Ann Arbor, Mich.-based ReCellular have joined the fray, while giants like eBay (EBAY), RadioShack (RSH) and GameStop (GME) have also launched trade-in programs.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs