Following the U.S. success of its iPhone trade-in program, Apple Inc. intends to expand the program to China. Sources familiar with the iPhone maker’s plans told Bloomberg that the program is set to launch in China as soon as March 31. Apple won’t be buying and re-selling used iPhone itself, but will rather rely on its manufacturing partner, Taiwan-based Foxconn Technology Group, to administrate the program.

High demand for Apple’s larger-screen iPhone 6 and iPhone 6 Plus led to a 70 percent increase in sales in China during Apple’s last quarter. Apple does not break out sales numbers by region but did indicate that 65 percent of the 74.5 million iPhones sold over the period came from international sales.

China is an important market for Apple and the company aims to have 40 company stores in greater China by mid-2016.

Last month, research firm International Data Corporation published a report showing that Apple claimed 12.3 percent of the Chinese smartphone market in the fourth quarter of 2014; a 99.7 percent increase over the same period in 2013.

Apple started its iPhone trade-in program in the U.S. in 2013 and it proved popular – especially when the iPhone 6 range was released last year.

“It has certainly been a driver for sales pickup,” said Roger Entner, an analyst with Recon Analytics LLC, who estimates that roughly 50 percent of people who bought a new iPhone 6 in the U.S. traded in their old iPhone.

Apple last week expanded its trade-in program in the U.S. to include non-Apple handsets. Apple’s U.S. trade-in program now exchanges gift cards in return for used Android and BlackBerry Ltd. devices.

Foxconn, which generates half of its revenue from the manufacture of iPhones, iPads and MacBooks, now has an opportunity to further capitalize on its relationship with Apple.

Similar to the U.S. program, Apple retail staff will gauge a used iPhone’s condition before issuing an appropriate amount of store credit. Foxconn will apparently buy the phone directly, meaning Apple will never actually take ownership of the device.

Foxconn will undertake any necessary repairs and then sell the used iPhones via its E-commerce sites eFeihu and FLNet as well as through Alibaba Group Holding Ltd.’s Taobao online store.

The report does not mention if Apple will take a share of the revenue from the sale of traded-in iPhones. The trade-in program seemingly only applies to iPhones originally purchased in Greater China.

Image via apple.com