Microsoft kicks off iPad buyback deal in latest effort to juice Surface sales

Gregg Keizer
16 September, 2013
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In the US, Microsoft will pay at least US$200 for used iPads made by rival Apple, and in return issue credit that customers can use to buy one of the company’s Surface tablets.

On its Microsoft Store website, Microsoft outlined the buyback deal. It will accept “gently used” iPad 2, and third- and fourth-generation iPads – the latter two models launched in 2012 – pay a minimum of US$200 for each tablet, and issue the funds as a gift card good for purchases at the Microsoft Store.

Customers must bring their used iPads to a Canadian or US Microsoft retail outlet – the program’s not supported online – where a salesperson will evaluate the tablet and decide on the dollar amount. Microsoft has approximately 70 stores in the US.

Apple’s 7.9in iPad Mini is not eligible for trade-in.

“Microsoft Store gift-card value… is subject to Microsoft’s discretion and manager approval,” the website said. “All trade-ins are final. Limit 1 per customer.”

Because the buyback program isn’t available online, it’s impossible to tell what Microsoft will pay for an iPad before going to a store. Re-commerce vendors such as Gazelle and NextWorth pay between US$150 and US$240 for a working 16GB Wi-Fi-only iPad, with the lower value for the 2011 iPad 2 and the upper-end for the newest fourth-generation ‘Retina’-equipped device.

Buyback companies pay more for iPads with more storage space or those equipped for accessing the internet over a mobile carrier data network.

They also pay cash for the Surface RT and Surface Pro tablets made by Microsoft. NextWorth quoted US$187 for a 32GB Surface RT and US$338 for the entry-level 64GB Surface Pro, or 54 percent and 43 percent of the list price, respectively. Microsoft’s tablets start at US$349 for the Surface RT, the struggling model powered by Windows RT, a subset of the more powerful Windows 8 that can run only so-called ‘Metro’ apps. The Surface Pro, which relies on Windows 8 and can run legacy software like the desktop version of Office 2013, starts at US$799.

The Redmond, Washington company has cut prices of both models in the last two months to account for over-optimistic inventory plans and to clear the decks before 23 September, when it will unveil new models for the holiday selling season.

The resulting gift cards from an iPad trade-in do not have to be used for the purchase of a Microsoft Surface, but can be redeemed for anything Microsoft sells in its stores, including third-party PCs.

iPad trade-in offer

The deal also offers a call for action to iPad owners who have been swayed by Microsoft’s television campaign that compare various features of the Surface RT with the 9.7in iPad, which starts at US$499 with 16GB of storage space.

Microsoft’s iPad buyback program expires on 27 October. Apple is expected to roll out new tablets this year and, if it follows last year’s practice – when it also unveiled a new iPhone in September, as it did last week – the most likely introduction date is Tuesday 22 October.

by Gregg Keizer, Computerworld

One Comment

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  1. A great laugh! says:

    MS Has 6 million unwanted Surface RT sitting in a warehouse. They’ve got to do something to get rid of those before the next generation of Surface (and iPads). The trouble is, this deal is only available in the US and Canada and only available at bricks at mortar stores. And they are also expecting that people will be foolish enough to not know that a Surface is a downgrade from an iPad.MS will be lucky if a “handful” of people bother!

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