Apple's Trade-In Partner Phobio Has Reportedly Faced an 'Alarming Uptick' in Complaints

[MacRumors]

Apple has placed increased emphasis on device trade-ins in the last few years, with the company largely relying on third-party partners for its trade-in program, including Atlanta-based outfit Phobio in the United States.

While many customers are satisfied with their trade-in experience, The Verge today reported that there has been an "alarming uptick" of online complaints about Phobio in the last few months. The report claims that many of these complaints have a common theme: a MacBook or iPhone that appears to be in perfect working order, only for the device to have an unexplained issue after being mailed in to Phobio for inspection.

In particular, the report claims that numerous customers have been told by Phobio that their MacBook's display has "three or more white spots," resulting in a significantly lower trade-in offer than Phobio originally quoted.

The report shares one customer's story:

When Daniel McGloin decided to trade in his mid-2017 Apple MacBook in February of this year, he thought he was getting a pretty good deal. The software engineer and San Diego native initiated the trade-in with Apple through the Apple Store mobile app, where he was quoted $350 for his used laptop. He felt it was in pretty good condition, with no apparent damage to the case and a fully functioning display and keyboard. […]

The situation soon changed after his laptop arrived for inspection. Suddenly, McGloin was told his MacBook was worth just $140, less than half what Apple originally quoted. The mysterious culprit: "display has 3 or more white spots," the Apple Store app told him. It’s a defect McGloin doesn't remember ever seeing, and one that he should have noticed: typically, white spots on an LCD display are evidence of serious damage or burn-in and are clearly visible. In McGloin's estimation, however, the laptop was in "excellent" condition, he tells The Verge, and he didn't see any white spots when he packed it up.

The Verge said it inspected McGloin's MacBook in person after he rejected the trade-in offer and could detect no such white spots or any discernible damage.

While any company is likely to have its fair share of customers complaining online, the report says "that doesn't explain the mystery of the white spots," resulting in some "perfectly functional" MacBooks having their trade-in value cut by half or more. The Verge said Phobio would not comment directly on the white spots issue, but the company said it strongly believes in "giving full and fair value" to customers for trade-ins:

We carefully assess each device sent to us, and only change the initial quote if the device we receive or its condition differs from what was initially indicated by the customer. We document our findings at every step of the way with photos that are shared with the customers. The customer can then agree to the revised quote, or if they do not, we express ship it back to them at our expense.

We specifically train our support team to see the trade from the point of view of the customer, with empathy, and to advocate for the customer. If devices are damaged in transit or we make a mistake in the inspection, we seek to fix it immediately. We strongly believe in giving full and fair value to customers for their trade ins. This helps fuel the circular economy, and sustainability, and it is part of our corporate purpose.

As mentioned in the statement, Phobio does allow customers to decline a revised trade-in offer, and they even ship the device back to the customer at the company's expense.

All in all, it's hard to quantify an "alarming uptick" in online complaints against Phobio, since many customers with positive experiences do not speak up. Nevertheless, all of this information is worth keeping in mind if you are considering a trade in.

Article Link: Apple's Trade-In Partner Phobio Has Reportedly Faced an 'Alarming Uptick' in Complaints

 

[Apple_Robert]

In my opinion, Phobio is scamming people for better profit for them. Apple needs to fire this company immediately.

 

[Root777]

I submitted one of those complaints. I sent in a MB Pro 15", they sent me a message telling me it wasn't worth as much as the initial quote along with a picture of clearly a MB Air! The image was clearly not my Mac. I wrote a complaint but never heard back, a few weeks later they shipped my Mac back.

 

[rtw07]

I sent in an iPhone 11 Pro Max for trade-in that was in perfect condition. Got an email saying the device had a cracked screen and shattered back, offering $0 for the trade. When I asked for the serial number of the device, it didn't match what I sent in. The photos attached to their evaluation showed a shattered iPhone that wasn't even the same color as the one I sent. Eventually got the issue resolved but it took several calls to Apple.

 

[thadoggfather]

People rightly have a phobia of Phobio

 

[WiseAJ]

This makes me never want to do a trade in with them in the future

 

[alexandr]

phobio? like germophobio and homophobio?..

 

[jahall05]

I had nothing but issues trading in my Apple Watch Series 4. They kept saying they couldn’t wipe my user data. I know I prepared it properly. I followed every step Apple had in the support document for preparing a trade in.

 

[jonen]

Interesting. I've traded in a couple devices directly at the Apple Store and had no issues. Not sure if I'm missing out on a higher valuation, but I'd much prefer the easy in & out with an Apple GC.

 

[LaundryCzar]

I had such issues I had to shame them on social media to get a more than a canned response and what I did finally get was my computer sent back with scratches it did not have went sent in. I had photos but at that point it was best to just move on and never use them again.

 

[Apple_Robert]

Interesting. I've traded in a couple devices directly at the Apple Store and had no issues. Not sure if I'm missing out on a higher valuation, but I'd much prefer the easy in & out with an Apple GC.

When you trade-in in the store, you get an honest assessment and immediate payment. Phobio isn't used with in store -trade-in.

 

[forumwarrior]

I was at least two of those complaints. The "3 or more white spots" was exactly the reason Phobio gave to knock $600 off one mid-2018 MacBook Pro, and $350 off a 2015 MacBook Pro. I sold them on eBay for more than the original trade-in quote with no issues. Phobio is obviously running a scam.

 

[Stunning_Sense4712]

It sounds like Phobio is running a scam by lying about the condition of the Apple product hoping the customer will take the low ball offer so they can make a bigger profit margin on the device. I hope Apple cuts ties to this company.

 

[JPack]

Apple salvages the displays and other components for their refurbished products, so the quality of the device must be high to get full value.

Phobio is likely using automated testing to determine quality of the LCD. These machines can pick up backlight bleeding and dead/stuck pixels. These are considered "white spots." If someone applies pressure to the MacBook lid, this can result in backlight bleeding over time.

Apple knows exactly how much Phobio is paying for each of these trade-ins, along with the serial number. So it's unlikely to be any kind of scam.

Apple demands are simply high, because they aren't scrapping these machines. These trade-ins are refurb parts or complete refurb products.

 

[mono1980]

If this is the same company that Apple works with for Watch trade-ins, they scammed me too. They claimed my watch strap clasps were damaged, when it wasn't as far as I knew.

 

[BigJohno]

Yup, i sent in a nearly flawless iPhone 8+ for trade in for 12 pro and they told me one price then lowered it by 100 dollars as soon as they got it. Nothing had changed and it lived in a case for 3 years. Scammed me too

 

[Apple_Robert]

I wondered why I started seeing a Phobio Support MR account recently responding to Phobio based posts. This story is probably why they are trying to do some damage control.

 

[EmotionalSnow]

Interesting. I've traded in a couple devices directly at the Apple Store and had no issues. Not sure if I'm missing out on a higher valuation, but I'd much prefer the easy in & out with an Apple GC.

If you have an Apple Store near you it’s definitely the better choice for doing a trade in than a third party company.

In my opinion it’s really unfortunate that Apple is contracting this out to other companies but on the other hand it might not make financial sense if they were to do it themselves.

 

[sw1tcher]

I know a lot of people had this issue with Phobio during the recent holidays when people were trading in 2020 iPhone SE's they got for under $100 through Cricket. Brand spanking new iPhone SE's (some with the plastic wrap still on it according to people who complained) being denied the full quoted trade-in value.

Phobio would tell the people trading in their 2020 iPhone SE's that the value was reduced because there were scratches or damage on it.

 

[gsmornot]

Finding a home for older devices is a real challenge in some cases. Hate to throw things in a drawer but trade in issues like these or buyers on eBay claiming there was damage really make it difficult. I have had both good and bad experience. I sold one item on eBay that the buyer claimed damage on. The item in the photos they sent were not the item I sold. After talking to eBay the buyer won. I even presented photos from the auction clearly showing my item was different. They said no. Sorry to digress, this story is about another vendor. If nothing else, happy they were able to get their item back.

 

[EmotionalSnow]

To me it sounds like they are either running a scam or so incompetent that they are mixing up their customers devices.

 

[iamMacPerson]

This has been discussed for months, if not years, here on the MacRumors' Forum. I'm surprised this hasn't been picked up on before. Phobio is incredibly shady and even has an account on here trying to respond to people who have had a bad experience.

My advise? Do in-store trade ins. You get the gift card immediately and I had no problem doing it at my Apple Store.

 

[Macalway]

Having a name like that must not help. Hilarious.

Btw, I used that other outfit 'Cashforyourmac' without any issues. Sent in a bunch of things.

 

[The Barron]

I submitted one of those complaints. I sent in a MB Pro 15", they sent me a message telling me it wasn't worth as much as the initial quote along with a picture of clearly a MB Air! The image was clearly not my Mac. I wrote a complaint but never heard back, a few weeks later they shipped my Mac back.

Total scam outfit from all the reports. Let's hope they get nailed hard for this unscrupulous business practice. I smell a large lawsuit coming.

 

[macfamily]

In my opinion, Phiobio is scamming people for better profit for them. Apple needs to fire this company immediately.

Have to agree, my last two devices were declared to be not what I specified and had dead pixels. They offered a lower amount and I told them to send them back and I reinspected, they were the correct devices and the clear stickers I placed over the lightening ports were still in place..... both devices were sold to happy buyers on eBay.

I also complained to Apple but did not receive a response.