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How does this work? I sold my old iphone to amazon. I never reported it "unstolen" or whatever to apple. Amazon paid me $200 for iPhone parts?



It's new in iOS 7. You'll have to explicitly wipe & reset your iPhone before selling it from now on.

So if it works as advertised, stolen iPhones and iPads will only be worth the sum of their parts.

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Hmm. After upgrading my ipad to iOS 7, I changed my pass code. Which I promptly forgot. I had to reset it from iTunes, on a computer which had never paired with the ipad (in fact I had to download iTunes to do this). When the ipad restarted it asked me for my Apple ID but that seemed to be for the iCloud restore. I think I could have skipped it and had a functioning ipad. But apparently not?

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Nope. The Apple ID is necessary to restore in iOS 7.

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removing that wipe feature would be a nice tidy way to destroy the secondary market for iphones...

did I just predict iOS8?

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No.

Apple are perfectly happy with the second hand market for iPhones.

I've just ordered a 5S. It's costing me £709. My iPhone 4S 64Gb is worth about £200 second hand. Even a new 8Gb 4S, the cheapest model available new, is £349.

Anyone interested in my second hand phone was almost certainly never going to spring for a new iPhone.

The market for second hand iPhones does next to nothing to cannibalise the market for new iPhones (which Apple cares about) and strengthens the iOS ecosystem (both by bringing in new customers who might buy apps, music and movies but also keeping customers away from competing platforms).

There's more upside than downside for Apple in second hand iPhones.

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With iOS 7, when you select "Erase All Content and Settings", it will disable Find My iPhone after prompting you for your Apple ID password.

http://support.apple.com/kb/HT5818

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