Apple fans can now get the new iPhone for a fraction of the cost by trading in their older smartphones.

The iPhone trade-in program will be starting this month, reports Bloomberg. The new service will allow Apple users to trade in their older versions of the iPhone for a discount on the iPhone 5.

According to the report, sources --who asked not to be identified since the news hasn't been announced by Apple-- say that the Cupertino company has partnered with mobile-phone distributor, Brightstar Corp. (STAR), for the new program.

This is not a new service, however. Websites like Gazelle have already been offering this scheme to users. ABC News reports that the website has already created a $1 million business by offering Apple trade-ins.

"Prior to the launch of the iPhone 5, the site received 1.2 million price quotes for iPhones from people who were considering selling their phones ahead of the launch," ABC reported.

Gazelle CEO, Israel Ganot, is looking forward to Apple joining this trade-in trend

"The biggest challenge for us has been to change consumer behavior...It will be great to see Apple jumping into it. We expect them to put the brand and marketing behind it and lift consumer adoption," Ganot told ABC.

Reports say STAR will also allow trade-ins for AT&T, T-Mobile and other carriers.

Currently, AT&T pays as much as $200 for used iPhones, Bloomberg reported.

The move is Apple Chief Executive Officer Tim Cook's way of enticing consumers to get the latest iPhone the company is offering and to counter the dying brand of Apple?

"There is insatiable demand there," Ganot added. "The average consumer can't buy the brand-new iPhone. The phones we bring to those markets are much more affordable."

Bloomberg says Amy Bessette, spokeswoman of Apple, and Patrick Foarde of Brightstar decline to comment on the issue.