You've probably seen the kiosks. Or maybe you were scrolling through the Costco app while waiting for a rotisserie chicken and stumbled upon the electronics section. Most people think Costco just sells bulk mayo and cheap gas, but their tech ecosystem is surprisingly deep. Honestly, if you’re looking to offload an old iPhone or MacBook, the Costco Apple trade in program—officially handled through their partner, Phobio—is one of those "if you know, you know" situations that can either be a total win or a massive headache depending on how you prep.
It’s not perfect. It’s definitely not as instant as handing a phone to a guy at the Genius Bar. But for the right person, the trade-in values can occasionally edge out what Apple offers directly, especially when Costco runs its specific promotional periods.
The Reality of the Costco Apple Trade In Process
Let’s get the biggest misconception out of the way first. You aren't handing your crusty iPhone 13 over to a cashier at the warehouse. Costco doesn't want your old hardware sitting in their stockroom next to the Kirkland signature sweatshirts. Instead, the Costco Apple trade in is a mail-in system managed by a third-party company called Phobio.
You go to the Costco website, search for trade-ins, and you’re redirected to a portal. You put in your Serial Number or IMEI. You answer some questions about whether the screen is cracked (be honest here, or they will ding you later) and if the device powers on. If you like the quote, they send you a box. You ship it. You wait.
The wait is the part that kills most people. It can take a couple of weeks. If you’re used to the instant gratification of a trade-in credit at a physical store, this feels like 1998. But the tradeoff is often a slightly higher valuation in the form of a Costco Shop Card. And since you're probably going to spend money at Costco anyway, that digital Shop Card is basically as good as cash.
Why Phobio Matters More Than You Think
Phobio is the backbone of this whole operation. They handle trade-ins for a lot of big brands, not just Costco. Because they are a high-volume recycler and reseller, they have very specific criteria. If you say your iPad is "like new" but it has a hairline fracture you can only see in direct sunlight, they will find it.
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When they find a discrepancy, they’ll send you a "revised offer." This is where the horror stories come from. You think you’re getting $400, they see a bruised pixel, and suddenly the offer is $180. You have the right to reject the revised offer and get your device back for free, but it’s a time sink. The trick? Clean your device. Take photos of it working before you put it in the box. Document everything.
Comparing Costco to Apple’s Direct Trade-In
Why bother with the Costco Apple trade in when you could just go to Apple? It usually comes down to the promos. Apple's trade-in values are famously static. They don't move much until a new iPhone launches. Costco, however, often bundles their trade-in program with member-only "Buy a Phone, Get a Costco Shop Card" deals.
Sometimes, during the holiday season or around the March iPad refreshes, Costco will offer an extra $50 or $100 on top of the base trade-in value if you’re upgrading to a new model through their site. That’s the sweet spot. If there isn't a promo running, the values between Apple and Costco are usually within $10 to $20 of each other.
Is $15 extra worth the hassle of a mail-in box? Maybe not. But if you’re trading in a fleet of family phones, that adds up to a free year of membership and a lot of hot dogs.
The "Costco Shop Card" Catch
You aren't getting cash back in your bank account. You aren't getting a credit on your credit card statement. You are getting a Costco Shop Card. For a regular member, this is fine. You use it on your next grocery haul.
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But if you were planning to use that money to pay your rent or buy a coffee at a non-Costco establishment, you’re out of luck. The Shop Card is the currency of the warehouse. It’s also worth noting that the digital version of the card usually arrives via email much faster than the physical one, so keep an eye on your spam folder.
How to Maximize Your Value
If you want the highest possible return on your Costco Apple trade in, you have to be tactical. Don't just dump your phone in the mail and hope for the best.
- Unpair everything. If Find My iPhone is still on, your trade-in value is $0. Phobio can’t do anything with a locked device. It’s a brick to them.
- The 100% Charge Rule. Charge your device to full before you turn it off and pack it. Sometimes devices sit in warehouses for a few days before they are inspected. If the battery drains to zero and won't turn on for the inspector, they might mark it as "Dead on Arrival."
- Use the Provided Packaging. Don’t get fancy with your own boxes. Phobio’s boxes are designed to keep the screen from touching the sides of the cardboard.
- Timing. Trade-in values for iPhones usually tank in late August, right before the September keynote. If you’re planning to trade in, do it in July or early August to lock in the price. Most quotes are valid for 14 days.
What Most People Get Wrong About Condition
People are optimistic. We look at our own stuff through rose-colored glasses. But the Costco Apple trade in inspectors are looking for reasons to pay you less. They look for:
- LCD Discoloration: If your screen has a yellow tint or "burn-in" from having your GPS on for 8 hours a day, that’s a downgrade.
- Frame Dents: Tiny scratches are usually "normal wear and tear," but a dent in the aluminum frame suggests an impact that could have damaged internal sensors.
- Third-Party Parts: If you got your screen replaced at a kiosk in the mall for $50, Phobio will know. They can see if the serial numbers on the parts don't match the logic board. This can sometimes lead to a total rejection of the trade-in.
Honestly, if your phone is beat up, you might be better off selling it on a marketplace like Swappa or even eBay. Costco’s program is best for people with devices in "Good" to "Excellent" condition who just want a seamless, no-meeting-strangers-in-a-Starbucks-parking-lot experience.
Technical Limitations
Not every Apple device is eligible. If you're rocking an iPhone 6S, the Costco Apple trade in value is basically "we will recycle this for you for free." The program generally covers the last 4-5 years of hardware. For MacBooks, it’s even tighter because Intel-based Macs have seen their resale value plummet since the M1, M2, and M3 chips took over.
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If you have an old iMac, shipping it is a nightmare. The box they send you is huge, and the risk of the screen shattering in transit is high. For large desktops, the "in-store" trade-in at an Apple Store is almost always a better move just for the peace of mind.
Actionable Steps to Start Your Trade-In
Stop wondering what your gear is worth and actually check it. It takes three minutes.
First, grab your device and go to Settings > General > About to find your Serial Number. Copy it. Next, head to the Costco website and search for "Trade-In."
Once you get your quote, compare it to the "Trade In" page on Apple.com. If the Costco Apple trade in price is higher, lock it in immediately. You don't have to ship it the same day, but locking in the price protects you if the market drops tomorrow.
Finally, before you box it up, take a video of the phone. Show the screen working, show the Serial Number in the settings, and show yourself turning it off. If Phobio claims it arrived broken, you have the evidence to fight the revised offer. It doesn't happen often, but when it does, you'll be glad you have the footage.
Check your email for the shipping label, print it, and drop it off at the designated carrier. Then, just wait for that Shop Card to hit your inbox. It’s the easiest way to subsidize your next bulk purchase of paper towels and organic spinach.
Critical Pre-Shipping Checklist
- Back up to iCloud: Ensure every photo and contact is synced.
- Sign out of iCloud: This is the #1 reason trade-ins fail. Go to Settings > [Your Name] > Sign Out.
- Factory Reset: Settings > General > Transfer or Reset iPhone > Erase All Content and Settings.
- Remove SIM Card: Phobio will not return your SIM card or your fancy leather case.
- Clean the Device: Use a microfiber cloth to remove oils and smudges; a clean device makes a better first impression on the inspector.