If you are thinking about buying a new iPhone when it launches next month, you may be interested to learn that Apple is preparing to launch an iPhone trade-in program that will enable the owners of older iPhone models to exchange their device for a newer iPhone model at an Apple retail store, at a discounted price.

That's according to 9To5Mac, which reported earleir this week that "sources with knowledge of the initiative" in its report that claims Apple CEO Tim Cook wants to launch the trade-in program to encourage more iPhone sales in its stores.

The report has now been confirmed. According to 9To5Mac, Apple will begin rolling out the Reuse and Recycle program on Friday 30 August.

If you bring your old iPhone into store, you'll be able to exchange it for a new iPhone at a discounted price, according to the report. 

The report suggests that the returned iPhones will be recycled, rather than shipped overseas and resold. 

The new phone has to be a contract phone, and it has to be activated at the store, according to the report. 

Get money off a new iPhone 

Apple will give you money off the new iPhone if you trade in your existing model, this will depend on the age and model of iPhone you are handing in. It will make purchasing a new phone more accessible.

We are yet to receive confirmation that Apple will run the same scheme in the UK. We'll update this story as soon as we hear. 

Earlier this year, at Apple's last quarterly earnings call, Cook said that he is "not opposed" to trade-in programs. "I see channels doing it, and I like the environmental aspect of it, and so that part of it is really encouraging to me."

9To5Mac highlights that another benefit of an in-store iPhone trade-in program is that more customers will be exposed to the rest of Apple's products in addition to the iPhone.

The original report claimed that Apple would start training its retail employees on the new trade-in program this week, and that the majority of retail employees will have completed their training by the end of the first week of September. Apple is expected to host a special event on 10 September, where we think the company will unveil its iPhone 5S, iPhone 5C and other new products.

See: What to expect from Apple's 10 September event

As part of the trade-in program preparations, Apple Stores have allegedly received empty shipping boxes that will be used to ship traded-in handsets. It has been suggested that the iPhones that have been traded in could be refurbished and re-sold in emerging markets.

See also:

Selling your iPhone second-hand: tips for trading up to a new iPhone 5S

Leaked images round-up: iPhone 5C scratch test, iPad 5 rear shell, iPhone 5S gold casing

How to find the best contract for iPhone

iPhone 5C preview