Apple iPhone 5se

Apple Inc. (NASDAQ:AAPL) is making an aggressive move in China, by allowing Foxconn, the supplier of iPhone parts – to buy and resell used iPhones on Alibaba and FLNet.

Apple Inc. (NASDAQ:AAPL) is opening its doors to letting one of their suppliers buy and sell used iPhones. However, the move reportedly will only be happening in China. The news first broke that Foxconn would be participating in this agreement, which would allow the company to buy and sell used iPhones through their consumer channels with Alibaba and FLNet, but that the move would only take place in China specifically.

Foxconn says it is pushing in this direction to accommodate local need that can’t be met through traditional Apple pathways, and that this will open the door to getting iPhone’s into the hands of millions of individuals who would otherwise not have an iPhone, or be able to upgrade.

Right now, it would appear as though the amount of money that would be getting grabbed for a used iPhone would be around $300. Interestingly, that is only about half of what they might traditionally get for a newer – or upgraded device. However, a 16GB iPhone 5s would collect right around $500, in US dollars, on the secondary market like that. So the move might not be an odd one, really at all. Rather, it could be an impactful move for Apple, as well as Foxconn.

This also comes shortly after Apple CEO Tim Cook pointed out that China is quickly becoming the largest market in the world for iPhones. While the United States has historically held that record, it will soon be passed by China, which is significantly larger when it comes to the technology holding world. China is atop most smartphone markets – Android included.

If this plan works, it will be interesting to see how quickly something like this would be adopted in other markets, like the United States. If an authorized secondary sales platform were established, it might make Apple reconsider something that it has historically left up to the individual market. Legitimizing secondary buyers – would give the company an ability to profit ultimately off of their devices twice. First, they would profit from the raw sale – and then when the device is recertified, it would pass another round of profiting – giving Apple a secondary take on the device.

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