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Apple Care, is it worth it?
- Thread starter linbash
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You'd think that would be an indication huh?
I don't know where you gathered this from, but extended warranties are major profit centers for almost every business. Consumer reports has repeatedly noted that profit margins exceed 50%, even for companies with bad hardware reputations (eg Dell). Time and again consumers have been warned that extended warranties are bad deals, and for good reason.
Now, devilot has had a bad luck streek with her hardware, but my cookie recipe will fix all of that right up.
I'm fishing for it; it's been burried 
You'd think that would be an indication huh?
I don't know where you gathered this from, but extended warranties are major profit centers for almost every business. Consumer reports has repeatedly noted that profit margins exceed 50%, even for companies with bad hardware reputations (eg Dell). Time and again consumers have been warned that extended warranties are bad deals, and for good reason.
Now, devilot has had a bad luck streek with her hardware, but my cookie recipe will fix all of that right up.
Having worked as a Asus notebook repair technician....well...a warranty like apple's is a good deal to me. Asus offers 2 year warranty out the door, and while the company is solid, there are just units that do not work, or have problems. The people who have warranties get the works from us because we strive for customer satisfaction (being just a notebook start up and not a main player quite yet - asus pushes their techs to make customers happy no matter what)...of course Apple is established so maybe their techs don't care.
I have had two laptops and one iMac. With the laptops, I think you definitely want to get Applecare.
Laptops are a lot of technology backed into a small package that you are constantly moving around. Something is bound to break, and you should plan on it. My current MacBook had a battery go bad (11months into it, so Apple care wasnt necessary). Just last week I messed up my hard drive and Applecare got it replaced for free. They also replace the top of my laptop because of discoloration. That would have cost me about $300 for parts and labor.
I dont think you have to get Applecare for iMacs and desktops. Since they dont move around much, if anything is going to break it will probably happen within the first year. How often you buy new computers and how you take care of your computer will determine if getting Applecare is worth it. I didnt get it for my iMac and Ive had no issues after the 1 year warranty.
Laptops are a lot of technology backed into a small package that you are constantly moving around. Something is bound to break, and you should plan on it. My current MacBook had a battery go bad (11months into it, so Apple care wasnt necessary). Just last week I messed up my hard drive and Applecare got it replaced for free. They also replace the top of my laptop because of discoloration. That would have cost me about $300 for parts and labor.
I dont think you have to get Applecare for iMacs and desktops. Since they dont move around much, if anything is going to break it will probably happen within the first year. How often you buy new computers and how you take care of your computer will determine if getting Applecare is worth it. I didnt get it for my iMac and Ive had no issues after the 1 year warranty.
You'd think that would be an indication huh?
I don't know where you gathered this from, but extended warranties are major profit centers for almost every business. Consumer reports has repeatedly noted that profit margins exceed 50%, even for companies with bad hardware reputations (eg Dell). Time and again consumers have been warned that extended warranties are bad deals, and for good reason.
Now, devilot has had a bad luck streek with her hardware, but my cookie recipe will fix all of that right up.
As i posted earlier in this thread, its all about customer retention. People buying extended warranties itself don't bring in much profits to the company, in the long run it'll be profitable because theoretically customers will be happier with their products and wil return
In answer to this, will simply post this link again:
http://blogs.consumerreports.org/shopping/2006/11/resist_the_pitc.html
While IJ's and devilot's opinions may hold weight, along with the others in this, until we hear from iGary, the jury is still out.
Are you kidding? Some views are just plain definitive!
Apple care is worth it
If it was about consumer retention, the company would focus on reducing the likelihood of product failure (which they have done over the past several years). Even if you have an extended warranty, the repair process can be long, which doesn't help the consumer or the company's image. Most consumers will question why your product *requires* an extended warranty. Obviously if getting an extended warranty is wise, then the company makes shoddy products, which is not going to help customer retention at all
In the end, if you want Applecare, then get it. I've used numbers, IJ Reilly has provided a link, and that's all we can do in terms of advising potential Applecare buyers.
And, if anyone's interested, I'm willing to insure your next airline flight for $1 million for only $2. This is a joke. Do not PM me.
Buy AppleCare.
Another testimonial. From October 2006.
http://www.ehmac.ca/anything-mac/45183-applecares-new-math-revisited-buy-applecare.html#post460275
The MacBook has since been sold. Whatever else I buy from Apple will have AppleCare, although the AppleCare may not come directly from Apple.
Another testimonial. From October 2006.
http://www.ehmac.ca/anything-mac/45183-applecares-new-math-revisited-buy-applecare.html#post460275
The MacBook has since been sold. Whatever else I buy from Apple will have AppleCare, although the AppleCare may not come directly from Apple.
Thanks IJ, but I have zero faith in Consumer Reports. I find their logic here sketchy at best. Applecare's appeal, to me, has nothing to do with tech support and everything to do with getting replacement components for the laptop. Two extra years of coverage for $130 or less? That's a deal. Hell, the tax on the purchase could have been almost that much in some areas.
I agree with another poster: I don't buy extended warranties on everything, but I would ALWAYS, ALWAYS buy it on a laptop computer. There's too much small stuff crammed into that shell, and it's going to get carried around and moved quite a bit. The chances of something going wrong are pretty good. Any MacBooks I buy are getting AppleCare, no questions asked. I'd also lean toward getting it on a Mac Pro, just because the things are so damned expensive and Applecare is so cheap when you get it through a third party.
I did not put AppleCare on my Mac Mini, and although I doubt I will ever own an iMac, if I did, I would probably not put it on that either. Ipods? Absolutely no way
Whether AppleCare is profitable for Apple has no relation to whether you should buy AppleCare. This is always a heated discussion.
What you need to ask yourself is if something happened to your computer what is the minimum you'd have to spend to diagnose/fix if you're going to an Apple technician. Are you comfortable doing repairs yourself?
Profitability does speak volumes. For example, when hardware margins are 30%, and extended warranty margins are at 50%, I can make a fairly safe assertion that Apple is charging more than is necessary to make a profit on Applecare.
The only conclusion I can draw from that is that Applecare is overprice, and hence, good for Apple and bad for me. Seeing as how many retailers/university campuses offer insurance programs for notebooks that cover accidental damage for the same price as Applecare, I really wonder why Applecare is the choice one needs to make.
This is true, but I still don't have to worry about that either way. With my credit card policy, I can have Apple repair the notebook and have Mastercard pay for the whole deal. Naturally this only lasts for one year beyond the standard warranty, but I think I'll take my $350 and put it towards my next computer purchase.
It's not heated as far as I'm concerned. I am simply responding to the often-made argument that AppleCare is necessary or a great deal. The counter-argument is that Apple makes absolutely certain that, on average, they will collect more from you in premiums than they will pay out on repairs. This makes it less than necessary or a great deal, in my book. YMMV, but don't try to tell me that Apple is taking a loss on AppleCare, when we all know it ain't so.
My MacBook recently developed cracks in the palmrest, for which the cure was apparently replacing the entire keyboard/trackpad assembly. The cost of the parts would have been $300, but luckily I was under warranty still. I went and bought AppleCare immedieately afterwards. Especially for laptops, I think it's worth it.
Profitability means that Apple will most likely continue selling that product. They will charge what the market will bear. I can't think of too many products that are sold at cost just to breakeven unless the companies mandate is to operate as a charity.
Like many have said, buy AppleCare on eBay or 3rd party and it's not $350, same with RAM upgrades. While the educational insurance policies may be better for students, it doesn't serve the rest of Apple's customers who aren't affiliated with educational institutions.
While the credit card policy is good, most only double the manufacturer's policy to maximum of 1yr. AppleCare covers Year 3. AppleCare also has worldwide warranty support.
Yes I agree with you that AppleCare is not necessary or a great deal at RETAIL price (especially since it doesn't cover accidental damage or theft), but for the $100ish I paid on eBay to cover my MBP it is a great deal for a product I spend hours on every day.
Of course they collect more from you in premiums then they pay out, otherwise they wouldn't be in business for long. Insurance is all about the transfer of risk. AppleCare is insurance for the masses who don't have access to credit card/educational/homeowner insurance policies that cover computers.
If you have no risk then you don't need insurance. If you can afford to pay for repairs flat out or buy new computers every year so your old one is always warranty protected then you don't need insurance. My point is before you rule out AppleCare make sure you have an affordable alternative in the event that the worst case scenario does happen after your 1yr warranty is over.
I don't recall saying that Applecare should be given away at cost. It would be bearable if the profit margin was ~30%. 50%? I'm not coughing up money to line someone else's pocket if there's no real (statistical) benefit for me. Odds are, I won't need Applecare, and neither will most customers. Forums have a way of attracting those who have computer PROBLEMS
You can get the insurance policy outside of schools. Many retailers (like Best Buy) offer plans. IMHO, they are much better in value because they cover accidental damage and at times have longer terms than Applecare.
The credit card policy is great, not good. I get an extra year of coverage, which means I only loose out on one year of coverage compared to Applecare. Even if I don't go the retail route and buy Applecare online, on a mbp, that's still around $270 that I'd pay for only ONE extra year of coverage. That's a bad deal to me.
As I've pointed out before, insurance should only be carried to cover losses that you can't readily afford to cover yourself. If you are buying insurance to cover costs you could pay without hardship should they occur, then you are, by definition, wasting your money. These decisions should be made by individuals according to their individual situations and on a case-by-case basis. Unfortunately, this is not the argument usually made in favor of buying AppleCare. The common argument is that AppleCare is absolutely worthwhile, a good deal, and even necessary. Making that kind of argument in favor of buying an insurance policy is ridiculous on its face.
I agree. Defaulting to the standard yes reply for the question is very bad advice IMO.
There are a number of posters who have made the argument that AC is necessary for laptops, not so much so for desktops, due to the nature of the design and its intended uses. Some have even said that there is a "pretty good chance" that your laptop will fail. This is a fallacious argument at best. What does "pretty good" mean? 5%, 20%, 50% or more probability of failure? Where are the data? The fact is, none of us know the actual failure rates. What we do know is that Consumer Reports studies show us Apple is one of the highest rated computer manufacturers in the business, and that Apple probably didn't become as successful as they have by selling shoddy products and selling extended warranties at a near loss. Take a look at the retail prices of AC directly from Apple, and compare it to prices from online vendors that are often found at deep discounts. That ought to raise a huge red flag, giving us some clues as to how much profit is gained from this "product". Even purchased directly from Apple, large discounts for AC are available from the education store -- in fact, larger discounts (in terms of percentages) than any other product Apple sells.
Nobody should ever be under the illusion that Applecare is a great deal for everybody (except for folks like devilot, but she's the exception here) -- even for the folks who paid $350 to insure their $2000+ MacBook Pro, only to be the unlucky victim of a major hardware failure costing more than the extended warranty itself. To some, it may appear to be a great deal, but the fact is, the majority of machines probably won't fail within their useful life. Thinking about this issue in different terms, this poor soul ended up paying an extra $350 to get the same product as someone else who ended up with a trouble-free MBP and who didn't pay for AC -- namely, a MBP which provided both people with at least three years of useful service. In that case, the economic damage due to a faulty machine may have been minimized, but it was by no means a "good deal".
Insurance vs AppleCare
Homeowners insurance does NOT cover accidental damage, and depending on the age of the computer you will only get a percentage of the original cost to you. (You need to own a home to get the insurance.)
I to have owned many many Macs since 1988. Never had AppleCare. I bought an ibook for a friend it has been to Apple for repair so many times I have lost count.
I sold computers for 7 years, and I had to sell extended warranties, I did not believe in selling them and lost my job.
I just bought my first iMac and since it is not repairable purchased AppleCare. I would recommend AppleCare for a notebook because a portable computer.
You can get AappleCare at LA Computing for around $99.00 plus shipping, or try eBay!
my 2 cents worth....
Homeowners insurance does NOT cover accidental damage, and depending on the age of the computer you will only get a percentage of the original cost to you. (You need to own a home to get the insurance.)
I to have owned many many Macs since 1988. Never had AppleCare. I bought an ibook for a friend it has been to Apple for repair so many times I have lost count.
I sold computers for 7 years, and I had to sell extended warranties, I did not believe in selling them and lost my job.
I just bought my first iMac and since it is not repairable purchased AppleCare. I would recommend AppleCare for a notebook because a portable computer.
You can get AappleCare at LA Computing for around $99.00 plus shipping, or try eBay!
my 2 cents worth....
Most homeowners policies do cover accidental damage to contents (and if yours doesn't, it might be smart to get one that does, as it's one of the more common reasons to need insurance in the first place), although you may have to specifically list certain high-value items like computers and jewelry in order to have them covered.
And renters insurance is available to those who don't own a home...it's the same thing, but obviously doesn't cover the structure itself.
That said, deductibles and premium increases resulting from making a claim against your insurance frequently mean that it's not worth trying to recover anything for something as small as a computer. Homeowners/renters insurance should be thought of as coverage for absolute catastrophe (like a house fire)...not individual items.
Well okay, but I don't know how that's a response to anything I said.
The point I was making (perhaps unclear) was that I am already forced to buy all kinds of expensive insurance, so I'm really sour on the idea of volunteering to buy any additional insurance that I don't really need. As an example, I have to buy general and professional liability for my business, not because I want it, but because my client's insurance companies demand that all of their consultants carry it. It's really quite a racket, this insurance business.
I agree, on average, Apple will make money by selling Applecare. They have access to detailed statistics and as a customer we don't. An average customer would be making claims less than the cost of the extended warranty. They wouldn't offer it otherwise. However, if you think you'll use or abuse your computer more than the average customer who buys the extended warranty, the equation changes. Let's say you will be traveling with your laptop a lot or use the DVD drive a lot more etc, then it could be worth the cost. Of course, there is the peace of mind aspect of it, which is hard to price. It might also make it easier to sell your Mac.
I bought Applecare for my iMac, because wireless connectivity issues were driving me crazy and customer service refused to speak to me on the phone before I purchased AppleCare. In the end, they spent an hour on the phone with me, but it did not help. Oh, well... (Somehow the problem faded away after some OS updates or maybe a neighbor moved away and took his base station with him, I don't know, so things are OK now.)
A few months ago the scroll ball on my Might Mouse stopped working and cleaning did not help, so I had it replaced. At least I got some of my money back.
I bought Applecare for my iMac, because wireless connectivity issues were driving me crazy and customer service refused to speak to me on the phone before I purchased AppleCare. In the end, they spent an hour on the phone with me, but it did not help. Oh, well... (Somehow the problem faded away after some OS updates or maybe a neighbor moved away and took his base station with him, I don't know, so things are OK now.)
A few months ago the scroll ball on my Might Mouse stopped working and cleaning did not help, so I had it replaced. At least I got some of my money back.
Absolutely! I purchased AppleCare for my 24" iMac last year...
Last month, just outside the standard warranty, it developed odd video corruption problems. It ended up needing a brand new video card. The cost of the card itself, plus the labour to install it, totaled just over the price of the AppleCare itself. Now, if anything more goes wrong within the next two years, I'll have "made" money.
Last month, just outside the standard warranty, it developed odd video corruption problems. It ended up needing a brand new video card. The cost of the card itself, plus the labour to install it, totaled just over the price of the AppleCare itself. Now, if anything more goes wrong within the next two years, I'll have "made" money.