I always see people on the forum saying "Go naked! Just buy AppleCare+ and do a replacement at the end of 2 years" instead of simply buying a case to protect their phone.
Apple recently increased the price of replacements from $49 to $79 per replacement. I assume that this was because Apple created AppleCare+ for a different reason (as insurance for when people genuinely damage their phone, and not simply for people to get a brand new replacement for cheap).
Since more and more people were simply buying it for reasons Apple didn't intend for (simply to go naked and get a replacement right before 2-years are up) and driving the cost up for Apple, they raised the replacement price.
It's kind of like car insurance, if everyone bought car insurance thinking "You know what? I'm just buying car insurance so that in two years time I can smash my car and get a brand new replacement!" then the cost would rise tremendously.
I'm curious though, when these people who simply buy AppleCare+ to go naked (knowing ahead of time they will get a replacement) cause the replacement prices to continue increasing, at what point would AppleCare+ become too expensive and no longer worth it for you?
Well, what you're suggesting is insurance fraud, plain and simple. I bought Applecare because I don't like cases, but I also don't want to have to pay full replacement price for my device if I happen to damage it. I never had any intention of intentionally destroying my device at the end of the two year cycle in order to get a new one. That would be illegal. It's unlikely that you'd be caught, but nonetheless, it is against the law.
Coincidentally, however, my iPhone 5 battery had always been crap, from day one. I took it in to the Apple store a couple weeks ago and they ran a diagnostic, determined that the battery was near the end of its useful life and replaced the battery. That alone made the applecare worth it. They also noted that if the battery replacement didn't improve the performance, they'd replace the unit. After replacement, I noticed a yellow blotch on the screen whenever the battery heated up. In addition, the edges of the screen were discolored. I'm not sure if they damaged something when they replaced the battery or not, but I brought it in and received a brand new replacement. Can't beat it.
And with Apple dropping the price of the 64 gb iPhone 6 by $100, it was a no-brainer to buy Applecare + this time also. It is well worth it.
I'm pretty sure Apple farms out the insurance to a third party anyway. And just like any insurance company, they lose money on claims but make more money on premiums.
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If I buy a iPhone 6+ sealed new in box from say Ebay or someone local, can I call and get Apple Care + on it?
Yes. When you activate the phone, it will establish a valid purchase date and you will have 60 days to buy Applecare. Keep in mind that Applecare is country-specific. So don't buy it in the US and expect coverage in another country.