Apple Launches 'AppleCare+' with Accidental iPhone Damage Coverage

[theBB]

I am not sure what they do in case of water damage, but Apple stores usually replace the phone for $199 if you have a cracked screen or buttons that stopped working etc. If you buy AppleCare+ and have an accident, you'll end up paying $148, savings of only $51. If you do not suffer any damage, then you will end up paying nothing versus losing $99 with AC+. In other words, risk your $99, so that you may save $51 overall. Not a great deal.

 

[charlituna]

My wife had her iPhone 4 on the roof of her car then drove off. Phone was demolished, she then took the pile that was left back to Apple store and they replaced it for free. I like that plan better.

Except that you can't count on that. Technically they should have charged her $199 if it was still under warranty or made her buy a new one. She was lucky that she got a tech in a good mood who was willing to plead her case and get her a favor, I'm guessing because she was honest, undemanding and had never had such a thing happen before. so she got a 'hsit happens' exception, that will never happen again.

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$49 service fee? On top of the $49 premium over regular AppleCare?

before this the service fee was $199 if you were in warranty and buying a full price phone or blowing your upgrade if you were not. per incident.

yes there are some folks that are lucky and never have a defeat or damage and thus paying $69-99 was a total waste. But then there are some folks whose kids break their phones monthly by dropping them, getting them wet etc. For them, the savings add up fast.

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What about stolen phones? Would have been nice after last Thursday...

nope. not lost either.

this is basically a paid service swap. key word being swap.

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That's nice, and if you catch someone feeling like making that as an exception, great. But Apple is not going to do that the vast majority of the time as the standard warranty (and previously Apple Care) specifically states it does not cover such instances, especially now that accidental damage coverage is available.

This is a nice, new option.

I suspect that they might still waive the fee one time or even perhaps allow you a third incident, if the conditions are right.

 

[chrmjenkins]

I am not sure what they do in case of water damage, but Apple stores usually replace the phone for $199 if you have a cracked screen or buttons that stopped working etc. If you buy AppleCare+ and have an accident, you'll end up paying $148, savings of only $51. If you do not suffer any damage, then you will end up paying nothing versus losing $99 with AC+. In other words, risk your $99, so that you may save $51 overall. Not a great deal.

My wife's iphone 4 was replaced for 200 after water damage.

Also, what if you damage your phone twice? Then you Save $200.

 

[ABernardoJr]

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My wife had her iPhone 4 on the roof of her car then drove off. Phone was demolished, she then took the pile that was left back to Apple store and they replaced it for free. I like that plan better.

I wished I was the sales person at the time.

I would have looked at her and said, "yep, you broke it alright, are you here to buy something?"

With that level of generosity and courtesy (and "sense of humor to boot") you sound perfect for a position at a Microsoft store. People make mistakes and fortunately apple has many kind employees that are willing to forgive those mistakes.

But all kidding aside, you sound perfect for a position at best buy. (what I said about apple employees wasn't part of the joke)

 

[garylapointe]

Apple's plan:
- $100 for two years.
- $50 per incident, maximum of two.
- Must sign up within 90 days of purchase.
- You deal with the Genius Bar. Annoying if you hate crowds or hippies, but there is always a chance they will just replace your phone for free without it counting as a claim.

I will probably just get the AppleCare again.

I'd rather my extended damage warranty be with Apple and not SquareTrade (which is about the same price, but they offer prorated refunds, I don't remember what they have as a "deductible"). I think I'll be getting this.

Above it says "Basic AppleCare for the iPhone, which is no longer available" so I think the only choice will be the AC+

And I'd swear I read earlier that it needs to be purchased at time of phone purchase, but now I can't find where I read that...

Gary

 

[fblack]

So, then its only really good for 1 break? At $49 a pop you break it twice + ACare basically equals the price of a new phone or did I miss something? Not a bargain that's for sure.

Hmmm...$99 ACare for iPhone vs $119 with ED discount for my iMac. Somehow I'm kinda feeling ripped off with the 4S especially since I paid $69 for my 3GS. So, since Apple Care is now more are they trying to tell me that the 4S breaks more easily? Since its the same design as the iPhone 4 I think I may wait till iPhone 5 shows up.

 

[mtbgtr]

I forgot to mention that my wife was prepared to buy a new or refurbed one and told them so. They took the electronic pile back in the offices behind the genius bar and came out with a new one, no other questions asked. Apple may have its faults but customer service, at least for my family's Apple habit, has been second to none. Maybe it helped that I have purchased four computers, two iphones and numerous iPods from the same store?

 

[Fofer]

Square trade is all I use...

I got SquareTrade for my iPad, Apple's out-of-warranty replacement for those is outrageous. And SquareTrade charges no deductible for iPads.

I did NOT get it for my iPhone (returned the policy after I did the math, and realized they charge a deductible for iPhones.) Since out-of-warranty replacements (for water damage, for example) is $199, SquareTrade's price plus its deductible would have to be much cheaper for it to make sense. As it stands too, I can go to a 3d party and get a broken screen repaired for less than $100.

 

[senseless]

Is this certain that the replacement, still in contract price, is just $200? I thought it was closer to $600 unless it was subsidized.

 

[easy-mac]

I was really excited about this until I read the fine print. From the AppleCare+ page:

Important Note

AppleCare+ must be purchased together with new covered equipment. See AppleCare+ Terms and Conditions for complete product details.



I guess people who like to wait until the end of the warranty period to buy AppleCare will have to come up with the extra cash when they purchase the phone. I wonder how many people will spend the extra $99 on AppleCare+ who would have otherwise spent it to increase the storage capacity and then bought AppleCare later?

Oh well, Apple will probably sell more AppleCare this way and that's what they're going for here since the margins are much bigger.

 

[Fofer]

Is this certain that the replacement, still in contract price, is just $200? I thought it was closer to $600 unless it was subsidized.

Yes, out-of-warranty replacements are $199. That would cover something like water damage. But not loss, or theft.

AppleCare+ doesn't cover loss or theft, neither does SquareTrade...

 

[spblat]

I am not sure what they do in case of water damage, but Apple stores usually replace the phone for $199 if you have a cracked screen or buttons that stopped working etc. If you buy AppleCare+ and have an accident, you'll end up paying $148, savings of only $51. If you do not suffer any damage, then you will end up paying nothing versus losing $99 with AC+. In other words, risk your $99, so that you may save $51 overall. Not a great deal.

Solid analysis. But I don't know for sure whether water damage is even covered by AppleCare+.

AppleCare+ for iPhone provides coverage for up to two incidents of accidental damage from handling. Each incident is subject to a $49 service fee.

Damage from handling? Sounds like "I dropped it." Doesn't exactly sound like "I handled it...into the toilet." Any definitive answer about this? Maybe in the 10 pages of contract when you buy it?

 

[Fofer]

I am not sure what they do in case of water damage, but Apple stores usually replace the phone for $199 if you have a cracked screen or buttons that stopped working etc. If you buy AppleCare+ and have an accident, you'll end up paying $148, savings of only $51. If you do not suffer any damage, then you will end up paying nothing versus losing $99 with AC+. In other words, risk your $99, so that you may save $51 overall. Not a great deal.

Basically the same deal as SquareTrade. I agree with you; I'll pass.

 

[senseless]

$100 plus deductible to cover a potential $200 loss? I'll survive without it.

 

[charlituna]

Is this certain that the replacement, still in contract price, is just $200? I thought it was closer to $600 unless it was subsidized.

THe replacement isn't a new retail box and doesn't require updating your contract.

Basically they are letting you buy the service part they would have given you had you not dropped your phone or gotten it wet.

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Oh well, Apple will probably sell more AppleCare this way and that's what they're going for here since the margins are much bigger.

I'm not so sure the margins are bigger. Apparently they do huge amounts of replacements of damaged phones so many more folks will use that side of things than the defect side. Given that they are charging 1/4 of what was supposed to be 'at cost' before AND the insurance encourages folks to buy the coverage and thus be able to get warranty coverage for longer (which also is often a replacement), they could be at the same or slightly less when it comes to margins