You can sell your phone to Gazelle.com and keep it until you get your new phone. They offer values inline with Apple Trade in prices. They'll send you a postage paid box and you send your old phone to them after you've gotten your new phone. That's what I do personally.
But to answer your question you don't have to turn your iPhone in until after you receive your new iPhone.
Hence why I sell my phones to Gazelle. I don't want an Apple store credit I might never use. I'd prefer to get cash for my phones.
Your understanding is correct. In the US, when trading in your iPhone via prepaid, mail-in service:
"Once your eligible device has been received and assessed, you will receive an Apple Store Gift Card equal to the amount of the trade-in value via e-mail within 3-5 business days."
Hey deggie,
I'm not sure I understand your post. Does apple allow you to apply for the trade-in, get your gift card for the value of your phone, apply it to your new phone purchase, get your new phone in the mail, and THEN mail back your old phone? Gazelle has a 30 day grace period (plus the pay you in cash, so not as important that you are paid in advance). I don't want to have a $130 apple store gift card that I'll never use. If so, that's awesome. How do I set that up? Everything I've read says mail in your old phone, THEN we'll give you a gift card. Thanks!
I want to trade in my iphone 6 and pre-order an iphone 8 on 9/15. Is there a way to do that without having to give up my phone for a week until my new 8 actually ships?