In an announcement last Friday, Apple Inc had launched a trade-in program in its US retail stores for earlier models of its iconic iPhone. This comes after the company is gearing for the launch of the latest version of its best selling smartphone.

Apple would be giving its customers credit for old phones exchanged and this credit can be used for the purchase of a newer iPhone model, according to a spokeswoman from Apple.

This also cuts into the thriving market for older models of the iPhone brand in established websites such as eBay and Gazelle. In this market, broken iPhones can be priced as steep as USD125 from sellers who then resell them either in the US or international market.

The market on used smartphones and tablets in the United States, according to Gazelle CEO Israel Ganot, would reach USD14 billion by 2015. He added, "So there's obviously a huge opportunity here for multiple players."