OK, let’s see ...
The “basic” warranty, the agreement for no cost repair (within proper use, etc.) is for an iMac is 12 months. The product may last far longer than the warranty duration and it’s in the manufactures best interest that it at least lasts the minimum period.
I’d also suggest it’s also in the manufacturers best interest that the product doesn’t experience [a costly] catastrophic failure within a period that an optional warranty is offered. i.e., Apple doesn’t want to sell a $189 iMac AppleCare and constantly replace a $500 display component (and this wouldn’t be conducive to repeat buyers, word-of-mouth, industry reliability reports). So it’s not like Apple wants to build in an 18 month life cycle.
AppleCare gives you “absolute” coverage for 36 months. Should you have to assume a failure between 12 and 36 months of ownership? Of course not. For me, where my machine is business critical, it’s more of a peace-of-mind cost. Would it have solved the plaintiff’s issue had he purchased it. Sure, but he didn’t buy it.
So the simple version - which has caused all the debate in this thread: Rasmussen didn’t purchase AC, his machine failed at 18 months, which is 6 months outside of the warranty period.
The big consideration [for this case] is the “reasonable” failure rate. Someone might look at the cost of AC and be willing to - for lack of better terms - gamble that they’re not going to experience a failure. In fact, quite a few folks might research the product and see low failure numbers, high customer satisfaction (that generally involves service needs) and think something like AppleCare doesn’t make any sense. Also keep in mind, part of of AC is support, so some people buy to have 3 years of no charge help, not just to cover repairs.
So what’s reasonable? That’s the _real_ nuts and bolts of this lawsuit. If Rasmussen’s purchase was motivated by a reasonable expectation of n years of use without issue, based on the sales, marketing, existing service rate data, etc., and this specific model (when combined with specific branded component) is a radical enough departure, he could (and I believe should) expect some kind of compensation.
We’ve got a brand new [as of about a year ago] Sony 55” LED in the bedroom, because the previous set had a known component issue, experience failure way outside of the industry norms (including Sony themselves), and the old TV was 3+ *years* out of warranty (I discovered TVs have a pretty long life expectation). FWIW, I didn’t even pursue this, I was going to buy a new one, found a group on FB, made one call, had a service guy come by, 2 days I get an offer of one of several models, I choose, 2 weeks later we’ve got a brand new 55” with all the bells and whistles
