If you’re tired of your old iPhone but do not have enough cash to go get yoursekf an iPhone 5 just yet, you might just want to take a look at Apple’s new trade-in program that would allow you to trade in older iPhones for cash.  This move would allow consumers to upgrade to the iPhone 5 without breaking their bank.

Sources claimed that Apple has struck a deal with Brightstar Corp., a mobile phone distributor that handles trade-ins for AT&T and T-Mobile in the US.

Nothing has been officially announced yet, but sources say that it is coming.

At present, AT&T is buying older iPhone 4’s and 4S’s for $200, which would allow consumers to purchase a 16GB  iPhone 5 on a two-year contract.  If Apple does launch a trade-in program and offer the same or better deal than AT&T, it would facilitate faster adoption of the iPhone 5 as consumers wouldn’t have to break the bank to get their hands on it.

“This will help them sell more phones, because it will lower the consumer’s out-of-pocket expense,” said Roger Entner, an analyst at Recon Analytics LLC in Dedham, Massachusetts.

Recyclable iPhones

Apple already runs a web-based recycling service in partnership with PowerOn Services Inc.  Those with old Apple devices they no longer want, or those with busted devices, can ship them out and the Cupertino company will send back an Apple Gift Card if the device you sent still has monetary value – and if not, the device just gets recycled and you feel better for somehow making the world a better place with a little bit less Apple trash.

With the Brightstar partnership, consumers will be able to trade-in their iPhones for cash, although it’s likely the value will be judged depending on the condition of the device.  If your iPhone looks pretty beat up, don’t expect to get $200 for it.  These transactions will only take place in Apple Retail Stores to facilitate faster delivery.  Which means if you bring your old iPhone, you can walk right out the door with either a new iPhone 5 or more cash than when you came in.

What to do with repurchased iPhones?

Apple can still monetize repurchased iPhones by refurbishing them and selling them in emerging markets where smartphone adoption is growing at a snail’s pace.  Since refurbished iPhones will be sold at a cheaper price, doing so might just help Apple to grab the attention of first time smartphone buyers – and if everything goes as planned, potentially prevent them from trying out Android smartphones in the future.

“The key is to get iPhones into as many people’s hands as possible,” Walter Piecyk, an analyst at BTIG LLC, said in an interview. “Selling used phones is one way to do that.”