New and used video game retailer GameStop started accepting trade-ins of iPods, iPhones and iPads in September. A financial call on Thursday confirmed the program will be a major focus for the company moving forward.
People can now trade in their unwanted iDevices at any GameStop location, reported CNET, but only 260 brick-and-mortar locations (out of over 6,600 global locations) will sell the refurbished devices. The Grapevine company has listed used iPhones and iPod Touches on its official website.
Per standard protocol, sellers can accept a flat amount of store credit or walk out with 20 percent less in cash. Then, GameStop makes a killing with a considerable mark-up.
A GameStop store manager told MyCE that the company offers $220 for a 16 GB WiFi-only iPad 2, and $150 for a 16 GB iPhone 4S with AT&T. Once refurbished, they're sold for $299 and $379, respectively.
The Apple trade-ins are shipped to a warehouse where the memory is wiped, the manager explained. The products are then sent to select locations. Though his store didn't currently have any iDevices in stock, he said several pieces were traded in over the past few weeks.
Meanwhile, GameStop CEO Paul Raines shrugged off a dip in net earnings, citing the strategy with popular iDevices as a potential revenue driver. The company has also started selling its own Android-based tablet.
"In the third quarter, GameStop outperformed the market and continued to execute against the long-term strategic plan through additional investments in digital and emerging businesses," said Raines. "We expect that our innovative digital, iDevice and gaming tablet businesses will supplement our leading retail business this holiday."
GameStop claimed the new direction has "exceeded initial expectations." (via CNET)
