$99 AppleCare+ for iPad Coming Alongside iPad 3?

[AndrewClarke]

I don't get why you'd buy Applecare in the first place. Insurance is, by definition, a losing proposition for the consumer. But, regardless, it seems like a lot of trouble to conceivably make an extra, what, 50 bucks? (after the cost of insured replacement)

In general I agree with you. In fact, one of the truisms I like here is that "insurance is for people who can't afford to not have it."

HOWEVER, there are circumstances where this might not be the case:

1. The insurance underwriters have done a bad job of estimating risk and have underpriced the insurance.

2. You are not the "average" user, so it makes sense for you to buy the insurance.

3. The repairing company, Apple in this case, can take advantage of its superior economy of scale and technical expertise to fix the problem more cheaply than you can yourself. Of course, this also is likely to apply if you bring in your out-of-warranty iDevice and pay out of pocket for them to fix it.

 

[mikepro]

Unless you're willing to wait weeks for the iPad 3 to surface on apples site as a refurb you mean.

I still don't know why Square Trade has not been mentioned in this thread yet. By far the best deal for either device and they offer discounts every time a new apple product is launched to cash in on the hype.

For example, the 4S has been available for months and still, for little more than a decent accessory ($59.99) you can get one year accidental with square trade.

SCENARIO 1
$200 iPhone @ contract price
$100 SQ warranty 2 years. $300 total

Week before contract & warranty expire, iPhone has accident. Free shipping both ways to square trade after filing claim with cost of $50. Maximum 4 claims total. Guaranteed 5 days process time or refund of warranty cost & device still fixed/replaced.

Paid out by ST at purchase price of $200 cash by check or card, purchase new model iPhone at launch. Net loss/gain: -$50 -3 karma points. +1 brand new current gen model.

....

To me the choice is clear.

Except, you just got ripped off by Square trade. You had to buy a new phone ON contract for $200 just before your warranty is up. What if you don't want to extend your contract? The cost is much higher then. Walk into Apple store and walk out with a new (ok "refurb") working phone immediately. Not contract extensions required. Much rather deal with Apple than Square trade.

 

[AndrewClarke]

February 2013: Need to sell iPad... probably won't get as much as I want because there are scratches on the back.

BOOM. Oops, I dropped it!!

Later... brand new iPad with no scratches for very little more + more money gained when selling it.

If you would really do this, you're a selfish *******.

 

[Amazing Iceman]

Of course, your personal usage and handling patterns will affect the chances of sustaining damage. If you're running around downtown Beirut, your iPad is probably more at risk than sitting in your living room. However, there is a limit of 2 replacements under Applecare+, so if you are really such a high-risk iPad user, you will end up buying replacements at full price after your first 2 $49 replacements anyway. People like you who are positive ("high risk of accidental damage") that they will be breaking an $800 piece of portable electronics might think about sticking paper and pencil.

And yes, the math is simple. Insurance premiums > paid claims. Thus the insurance never "pays off" for consumers overall.

Consider this: I bought my iPad 1 two months after it came out, and only had to exchange once, I don't remember exactly why; I think it was rebooting often by itself or something like that, but not due to Accidental Damage.

I take good care of my stuff, but still, I don't discard the possibility that it could happen at anytime, maybe not caused by me, but by other people around.
Just like a while ago, I was with some friends looking for an address in Google Maps for a couple of minutes, and somehow the display got scratched for the first time in over two years. I guess too many hands trying to interact with the map, someone may have ben wearing a bracelet or a diamond ring.

 

[saud0488]

Next time your car breaks down fix it yourself, if a house burns down rebuild it yourself with no help from others. Lets see how far that gets you.

I do actually fix my car myself. Your house burning down analogy was terrible though.

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How are you at repairing jet engines? F-22's? Some people aren't mechanically inclined. Laziness has nothing to do with it.

Let's not compare the fixing of jet engines with the very simple task of replacing an lcd or digitizer glass especially when there are dozens of videos online showing you exactly how to do it in a step by step fashion. Not to mention dedicated websites. You fanboys sure are a sensitive bunch. Or maybe it's an American thing

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Speaking of AMEX, I just got approved for an AMEX Blue Cash Everyday credit card.

• No annual fee.
• I get $100 cashback on $1000 worth of purchases for the first 3 months.
• 90 day theft and accidental damage protection on purchases.
• Extends original manufacturer's warranty by 1 year.

excellent choice. American Express is very good about this. I've had to file two theft claims while in college. Funny thing is both were for apple products. Anyways, American express is great about it. I've heard of people being shafted by other cards such as citi for theft protection.

 

[Thunderhawks]

Next time your car breaks down fix it yourself, if a house burns down rebuild it yourself with no help from others. Lets see how far that gets you.

He is too lazy to do that

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I do actually fix my car myself. Your house burning down analogy was terrible though.

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Let's not compare the fixing of jet engines with the very simple task of replacing an lcd or digitizer glass especially when there are dozens of videos online showing you exactly how to do it in a step by step fashion. Not to mention dedicated websites. You fanboys sure are a sensitive bunch. Or maybe it's an American thing

Not everybody is a DIY person. If somebody paid 400 bucks or more for an electronic device they will be careful and may not want to take things apart.

For that matter they may not even know about ifixit or clumsily ruin their device.

Again, that doesn't make them lazy, just cautious.

Get off your high horse and acknowledge that every person has a different way of doing things. Doesn't make them lazy.

 

[tombilske]

Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

AppleCare+ is a rip off, I bought it for my fiancé's iPhone 4S. Bought it in case my fiancé just in case she accidentally damaged it. She left it on her friends car with her wallet. I found it 3 miles away in the middle of an intersection with her wallet. Was run over by a car in the middle of an intersection. Grabbed the phone, and brought the broken phone into the genius bar, that flatly denied to honor the accidental damage warranty. Because the phone was quote "beyond economical recovery" when I pressed this again why they wouldn't honor an accidental damage warranty, I was ready to pay the $50 to replace it, they said he would go check in the back. He came out and said because it was missing the top metal bracket and head phone jack it was technically in multiple pieces and couldn't honor it.

Not worth it.

i would recommend trying again at another Apple Store as it seems to be up to their discretion with the "beyond economic recovery" assesment

 

[AppleScruff1]

Let's not compare the fixing of jet engines with the very simple task of replacing an lcd or digitizer glass especially when there are dozens of videos online showing you exactly how to do it in a step by step fashion. Not to mention dedicated websites. You fanboys sure are a sensitive bunch. Or maybe it's an American thing

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First of all, the last thing anyone here would call me is a fanboy. Second, it is a violation of TOS to call another user a fanboy. Third, I stand by what I said. Just because I can repair a jet engine doesn't mean you could do it by reading the iFixit guide to the F-22 Raptor. I know millionaires who can't hang a picture. They are far from being lazy.

 

[DesignerOnMac]

That's probably what I need. I have the money to buy iPad 3. How does AMEX make money though if there is no interest? Is there a yearly charge?

I do not know where this person gets his info, but it is incorrect.
1. AMEX works like any other CC. You charge something and it will show up on your statement. You have the option to pay it off, of pay the minimum for the month or any other amount above the minimum monthly fee! For the next 30-31 days you will be charged interest, (a little less than 12% APR). So like other cards, the sooner you pay it off the less the purchase will cost you in the end. My AMEX card has a lower interest rate than my Bank of America Visa CC, by the way.

2. AMEX has a number of business CCs, some like the gold card have annual fees, but AMEX also offers no annual fee CCs as well.

(I have been an AMEX member since 1996.) Also with AMEX you get reward points. I was able to buy a $300 vacuum for free last year with my reward points!

 

[scoobydoo99]

In general I agree with you. In fact, one of the truisms I like here is that "insurance is for people who can't afford to not have it."

HOWEVER, there are circumstances where this might not be the case:

1. The insurance underwriters have done a bad job of estimating risk and have underpriced the insurance.

2. You are not the "average" user, so it makes sense for you to buy the insurance.

3. The repairing company, Apple in this case, can take advantage of its superior economy of scale and technical expertise to fix the problem more cheaply than you can yourself. Of course, this also is likely to apply if you bring in your out-of-warranty iDevice and pay out of pocket for them to fix it.

Agreed. There are always exceptions.

Consider this: I bought my iPad 1 two months after it came out, and only had to exchange once, I don't remember exactly why; I think it was rebooting often by itself or something like that, but not due to Accidental Damage.

I take good care of my stuff, but still, I don't discard the possibility that it could happen at anytime, maybe not caused by me, but by other people around.
Just like a while ago, I was with some friends looking for an address in Google Maps for a couple of minutes, and somehow the display got scratched for the first time in over two years. I guess too many hands trying to interact with the map, someone may have ben wearing a bracelet or a diamond ring.

I agree that "stuff happens". I just "insure" myself - if I drop my iPhone or iPad, I have to eat the cost of a repair/replacement. In the long run (over years and years of purchasing and upgrading products), I expect to come out ahead versus always buying insurance that I may or may not need. Like I said, if coming up with the $500 - $1000 for a non-insured accident is a hardship, then maybe insurance makes sense. But it generally does not "save" any money long term.

 

[crisss1205]

I do not know where this person gets his info, but it is incorrect.
1. AMEX works like any other CC. You charge something and it will show up on your statement. You have the option to pay it off, of pay the minimum for the month or any other amount above the minimum monthly fee! For the next 30-31 days you will be charged interest, (a little less than 12% APR). So like other cards, the sooner you pay it off the less the purchase will cost you in the end. My AMEX card has a lower interest rate than my Bank of America Visa CC, by the way.

2. AMEX has a number of business CCs, some like the gold card have annual fees, but AMEX also offers no annual fee CCs as well.

(I have been an AMEX member since 1996.) Also with AMEX you get reward points. I was able to buy a $300 vacuum for free last year with my reward points!

There are 2 types of American Express Cards. You have Charge Cards (green card) and Credit Cards (blue card).
Charge Cards do not allow you to carry a balance which means if your balance at the end of the month/statement is $500 you owe $500. There is no if/and/or buts.

With a Credit Card you may keep a balance and with that balance that carries over to the next statement they charge you interest.

 

[Amazing Iceman]

Agreed. There are always exceptions.



I agree that "stuff happens". I just "insure" myself - if I drop my iPhone or iPad, I have to eat the cost of a repair/replacement. In the long run (over years and years of purchasing and upgrading products), I expect to come out ahead versus always buying insurance that I may or may not need. Like I said, if coming up with the $500 - $1000 for a non-insured accident is a hardship, then maybe insurance makes sense. But it generally does not "save" any money long term.

I'm just considering the risk factor in my own case.
I will be getting Safeware's Theft and Accidental Damage coverage.
3-year coverage is $170.00 no deductible.
And I'm getting 2-year Warranty upgrade for free by using a VISA Signature Card.

 

[Saturn007]

Great thread! Nice to see such a generally civil back and forth on an issue on the net--and one that's informative to boot.

One observation, however. There's a refrain in here that because Apple makes money on AppleCare, then it must be a bad deal for consumers--but that's simply not the case!

It makes the mistake of equating the rate of return for the company with the expected value for the individual. Those are not the same thing.

For one thing, the cost to the company to provide someone with a replacement (refurbished or new) is much less than the cost for the individual to replace their damaged unit with a brand new one, at retail.

For another, we should recognize that $100-150 for peace of mind, fast and free repair, & technical support has much greater value to some people than others. In addition, there's the issue of disposable income now vs. uncertain availability of funds in the future. That can make a big difference to many people. Finally, there's the family and friend relationship issue as well. With AppleCare+ on your item, if a child, sibling, pal, or spouse drops "your" iPad and breaks it, it's not really a big deal and will not be as traumatic an event on everyone. Without it, someone may feel quite bad and someone else (the owner) might feel quite angry. There's no easy price tag that can be placed on avoiding all that!!

To me, the real issue is the relative cost of the insurance vs. the price of a new or refurbished replacement. That's why it often makes more sense to spring for AppleCare on high-end, $$ products such as laptops than on low-end ones.

As to insuring iPads, ceteris paribus, it would make more sense to get it on the more expensive 64gb, 4G models ($100 vs. $700-800 upfront cost) than on the the lowest end 16gb wi-fi ($100 vs. $500). Yet, for many, it still could be worth it on the low end.

It's interesting that AppleCare+ on the iPad also covers a Time Capsule and any Airport device purchased... all on the same policy! That makes it more attractive-- covering multiple devices for one single price.

 

[Saturn007]

Oh, I echo the thoughts about Square Trade. Had great success with them repairing the home button on an iPhone 4. They have it down to a science... just as Apple does, sent us a padded prepaid mailing box, just perfect for the iPhone. Turn around was under a week. Wow! What a difference a fully-functioning home button makes.

One other thought about options... check out your home owner's policies... some have an inexpensive personal articles provision (a few bucks a year only) that covers theft, damage, etc. That's the best value on the planet.

But read carefully and ask questions as there can be exceptions... e.g., State Farm dropped coverage for iPhones!