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Why then does apple not offer to take these phones (without compensation) and refurb them to be resold, by Apple. This way there is no incentives for thieves as Apple will not give them a dime however these phones are not part of the huge trash pile that is being generated.

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Not every trade is handled by Apple. A tiny minority outside of the US. And I dislike the idea that they can remotely make my phone unusable, like Samsung can.

They do, people trade in phones for credit towards an iphone all the time.

Doing it without the meagre compensation they give now would be deeply unethical, Tesla tried something like that recently when a story emerged that someone was quoted for full out of warranty battery replacement for a broken cooling hose fitting on their cars battery and they refused to give any core charge even though the battery itself was still fully functional (https://www.youtube.com/watch?v=n8-OkfCcRAo).

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