According to unnamed sources, Apple Inc. (APPL) is set to fully embrace iPhone trade-in programs for the month of June, Bloomberg reported. Sources refused to be named because Apple had not officially announced the plan yet.

The trade-in program is targeted to those iPhone users who want to upgrade their mobile units to the iPhone 5 in exchange of their older Apple mobile units.

Apple did not fully encourage trade-in programs in the past until Samsung Electronics Co. lead the market race in the U.S. for the month of May.

Trade-in program is a marketing strategy developed to boost sales of new units as they are being introduced to "mature markets" where a big bulk of the market was already using a smartphone. Specifically, Apple plans to buy old phone units under the condition that users will upgrade to the most recent iPhone model.

Old iPhone and smartphone units to be collected through the trade-in programs will then be sold to emerging markets, mostly in the developing countries like China, Philippines, India and Brazil, "where Apple's share is lower and demand for cheap device is greater." In this way, trade-in programs will not devour the sale of the latest iPhone 5 to be introduced to the existing market.

Trade-in programs had been a successful market strategy for countries like the U.S.

In the U.S., Apple Inc. partnered with Brightstar Corp. Star to help AT&T and T-Mobile to successfully hold their trade-in programs. Brightstar Corp. Star is a distributor for mobile phones that had been working with AT&T Inc. and T-Mobile US Inc. in all of their trade-in programs in the past. The company had also work with other service providers and mobile manufacturers in conducting trade-in activities.

Trade-in programs are effective tool to boost sale for newly introduced mobile units as proven by AT&T. AT&T is willing to pay as much as $200 for old but still usable iPhone 4s. The amount paid by AT&T will already be enough for a customer to purchase an entry-levelo iPhone 5.

According to Israel Ganot, Chief Executive Officer of an online mobile device trade-in company, "The overall size of this market is increasing rapidly." He estimated that "20 per cent of U.S> consumers buying a smartphone this year will do so using a trade-in program up from 11 per cent in 2011."

David Edmonson, Chief Executive Officer of eRecyclingCorp, another trade-in company said that "The iPhone is an iconic device that people around the world want to own. It they can't afford a new Mercedes, they'll' get a used one."

The rumored trade-in program with Brightstar is available at Apple's retail outlets. This method will allow customers to have their payments received right away as compared to the troublesome of shipping their older gadgets and waiting for the payment to arrive.

Amy Bessette, a spokeswoman for Cupertino, California-based Apple office, and Patrick Foarde, spokesperson for Brightstar working for Ketchum Inc. chose not to give any information about the rumored trade-in programs.

Eager customers will have to wait for Apple Inc. to officially confirm trade-ins.