I think they probably disassemble some of the older items they take as trade-ins to reuse (recycle) the electronic components. A lot of companies do that these days. Much better than sending them to a landfill. So even nonworking devices are probably worth at least a little bit to them. If nothing else they can use the parts to repair and refurbish items sent back as returns.
I’ve never taken advantage of the trade-in program, opting to sell my old items on eBay or gift them to others. But it seems the best part of the trade-in deals is often the included 25% discount for the new item being purchased. They do have rules though, like only being able to trade-in one old item on one new item, at least when I checked into it several months ago.
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