Bloomberg (News - Alert) is reporting that Apple plans to allow in-store customers to trade in their old iPhones when they upgrade to newer models.

According to Bloomberg writer Peter Burrows, Apple (News - Alert) has teamed up with Brightstar Corp., a mobile phone distributor, and plans to kick off the program next month.

CEO Tim Cook has initiated the program so that Apple can offer more refurbished iPhone (News - Alert) 4 and 4S models in developing countries. In return, more U.S. customers who trade in old iPhones can receive a discount when they upgrade to iPhone 5.

The move may help Apple to bolster its sagging shares and to reignite its sales numbers. About 20 percent of Americans who plan to purchase smartphones this year will do so with a trade-in. In fact, AT&T (News - Alert) already pays as much as $200 for a working iPhone 4 or 4S.

Apple currently offers a recycling program in conjunction with PowerOn Services, Inc., out of Roseville, Calif. The program offers an Apple gift card to anyone who ships an iPad, Mac, iPhone or PC for recycling. Also, people can ship back iPods or non-Apple mobile phones for free recycling.

In stores, Apple offers a 10-percent discount on the purchase of a new iPod when customers trade in their old iPods.

Insiders report that the iPhone trade-in program is just one way that Apple hopes to reclaim some of its momentum. For example, rumors are swirling that Cook plans to introduce Apple's new music streaming service called iRadio at the company's annual developers' conference on June 10. The conference should also feature the debuts of iOS 7 and OS 10.9 and both a new MacBook Pro and a new MacBook Air.

Cook has also hinted at other "game-changing" products and services in the pipeline, but these will not come out until the fall.