One of the news I have noticed recently is the “iPhone trade in” program launched by Microsoft, right after Apple had released its new iPhone 5S and 5C. The deal says that customers can trade-in a gently used iPhone 4S or 5 to receive a minimum of $200 of in-store credit at a Microsoft Store. This is quite an eye-catching move made by Microsoft.(Link: http://content.microsoftstore.com/offers)

Microsoft has been running the Recycle for Rewards Program to encourage consumers to trade-in old computers, mobile phones, games etc. for store credit. I think it is a great program as it gives consumers the chance of getting rid of the old devices and even get some money value from them. From the company’s perspective, it creates a direct financial incentive for consumers to shop at Microsoft stores and make consumption with the credit they have. The iPhone trade-in offer is valid from September 27 to November 3, together with its existing iPad trade-in offer, target right on the consumers of Apple product. Under the offer, Microsoft has also suggested alternatives to the trade-in devices such as its new surface 2, surface pro and the windows phones. This is a smart promotion strategy of Microsoft to attract customers with out-dated devices from Apply to try out Microsoft products. They understand that customers do have some switching costs, and that is why they are offering you financial incentives. However, considering the value of trade-in for those customers, the minimum of $200 may seem lower than the expectations of some people. They may want to sell their old iPhones or iPads through online platforms which they can charge for a higher price and get some cash directly. Therefore, the effect of this offer still depends on consumer preferences, it might not have a huge impact on the market, but it is still a nice try of promoting Microsoft products.

With the EUR 5.44 billion acquisition of Nokia’s Devices & Services business, license Nokia’s patents, Microsoft is trying to build up its strength to compete with Apple for market shares in both mobile phone and tablet markets. As a potential customer to these two firms, I am looking forward to how Microsoft would develop on it products, especially the Windows Phones made by Nokia.