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iPhone reselling is giving Apple a foothold in emerging markets

Business Insider spoke with Gazelle about the life cycle of a used smartphone and discussed how the old iPhone in your drawer can land in the hand of someone in China.

Israel Ganot, the CEO of Gazelle, says that 50 percent of its wholesale inventory of used smartphones is sold to overseas distributors. Many of these distributors then sell the used devices on the streets of Vietnam and China for $350, which is a fraction of the cost of a new handset.

You would think these low-cost phones hurt Apple's bottom line, but the Gazelle CEO claims they are actually helping the Cupertino company gain a foothold in these emerging markets. Even though Apple isn't getting money for the used hardware sale, the company is getting new customers, who are dropping cash to buy music, movies and apps in the iTunes Store.

You can read more about Gazelle and the life cycle of its used phones in the article on Business Insider.

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