( CNN ) -- Confirming earlier rumors , Apple launched a new program Friday that will allow customers to trade in old iPhones at U.S. Apple stores for credit towards a newer model . Apple already has an online recycling program that lets users trade older iPhones for credit on an Apple gift card . This new nationwide program lets customers bring their phones into stores for a discount on a new handset -- most likely the next iPhone , expected to go on sale next month -- provided the new phone comes with a wireless contract . You may want to hold off until Apple makes its latest iPhone announcements so you 're not stuck with last season 's model . The company is widely expected to unveil two new iPhones at an event on September 10 . `` iPhones hold great value . So , Apple Retail Stores are launching a new program to assist customers who wish to bring in their previous-generation iPhone for reuse or recycling , '' said Apple spokeswoman Amy Bessette in a statement . `` In addition to helping support the environment , customers will be able to receive a credit for their returned phone that they can use toward the purchase of a new iPhone . '' According to reports in the Wall Street Journal and 9to5 Mac , the most Apple will credit someone for an old device is $ 280 , and the store credit needs to be used on a new iPhone . Apple 's Reuse and Recycling programs are not new , but they seem to get renewed attention every August , just ahead of September iPhone announcements . A version of program has been available through Apple.com for years . After answering some questions about the state of a device , you can trade eligible computers , iPhones , iPads and iPods for Apple store credit . The new in-store program will be operated via a third-party re-seller , Brightstar ( the online recycling program is run through PowerOn ) . Prices may vary between in-store and online trade-ins , although there are fewer limitations with Apple 's online option . You get store credit that can be used towards any product , and no contract is necessary . Right now , a top of the line , mint-condition iPhone 5 can net $ 406 in Apple store credit . Before handing your old device over to Apple , check all your options to make sure you 're getting the best price . Carriers including AT & T and Verizon also offer store credit in exchange for old iPhones and other smartphones . Sites like Gazelle and NextWorth will also give a free quote for selling old iPhones , and they pay in cash that you can use on another iPhone , a rival model or a fancy dinner . To determine how much your old smartphone is worth , Apple and the other companies will ask if it 's had any water damage ( thanks to a small sensor in the headphone jack , they can tell if you 're lying ) , make sure everything is working properly and check the exterior for scratches and other flaws . If you have patience , eBay and Craigslist can also bring in good prices for old devices . Or , if you 're feeling charitable , there are nonprofit organizations that accept iPhone donations .
iPads users now can trade in old models at Apple stores for credit on a new phone . The company 's Apple program offers online credit for phones , iPhone and computers . iPads is widely expected to unveil two new iPhone .