iPhone reselling is giving Apple a foothold in emerging markets
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.
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