To the apple care response: I am tech savvy enough haha, my only concern is with physical damage. I am curious of apple care covers cracked screen or a drop or anything... I need to protect my investment
that is great! just what i needed to hear. I will definitely buy a external hard drive or two... but would you recommend upgrading the memory?
I see no ones answered your question, but I will! Yeah for you! First heres what AppleCare covers:
3. What is Covered? 3.1 Hardware Service
If during the Coverage Period, you submit a valid claim by notifying Apple that (i) a defect in materials and workmanship has arisen in the Covered Equipment, or (ii) the capacity of a covered iPod battery to hold an electrical charge has depleted fifty (50%) percent or more from its original specifications, Apple will either (a) repair the defect at no charge, using new or refurbished parts that are equivalent to new in performance and reliability, or (b) exchange the Covered Equipment with a replacement product that is new or equivalent to new in performance and reliability, and is at least functionally equivalent to the original product. If Apple exchanges the Covered Equipment, the

original product becomes Apples property and the replacement product is your property with coverage for the remaining period of the Plan.
3.2 Covered Equipment
In addition to the Apple-branded product and accessories contained in the original packaging, Covered Equipment includes the following according to your Plan:
(i) Under APP for Mac, (a) one compatible Apple branded display if purchased at the same time as the Covered Equipment, (b) an Apple-branded mouse, Magic Trackpad, Apple Battery Charger and keyboard if included with the Covered Equipment (or purchased with a Mac mini), or (c) an AirPort Extreme Card, an AirPort Express or AirPort Extreme Base Station, Time Capsule, an Apple-branded DVI to ADC display adapter, Apple RAM modules and MacBook Air SuperDrive if used with the Covered Equipment and originally purchased by you no earlier than two years before the Covered Equipment purchase.
(ii) Under APP for Apple TV, an AirPort Extreme Card, an AirPort Express or AirPort Extreme Base Station and Time Capsule if used with the Covered Equipment and originally purchased by you no earlier than two years before the Covered Equipment purchase.
3.3 Technical Support
During the Coverage Period, Apple will provide you with access to telephone and web- based technical support resources. Technical support may include assistance with installation, launch, configuration, troubleshooting, and recovery (except for data recovery), including storing, retrieving, and managing files; interpreting system error messages; and determining when hardware service is required. Apple will provide support for the then-current version of the supported software, and the prior Major Release. For purposes of this section, "Major Release" means a significant version of software that is commercially released by Apple in a release number format such as "1.0" or "2.0" and which is not in beta or pre-release form. The scope of technical support provided to you will vary according to your Plan.
3.4 Scope of Technical Support
(i) Under APP for Mac, Apple will provide technical support for the Covered Equipment, Apples operating system software (Mac OS) and Apple-branded consumer applications pre-installed with the Covered Equipment (Consumer Software). Apple will also provide technical support using the graphical user interface for server administration and network management issues on Apples operating system server software (Mac OS Server) on a Mac.
(ii) Under APP for iPod, Apple will provide technical support for the Covered Equipment, iPod OS and software applications that are pre-installed with the Covered Equipment (both referred to as "iPod Software") and connectivity issues between the Covered Equipment and a Supported Computer, meaning a computer that meets the Covered Equipments connectivity specifications and runs an operating system that is supported by the Covered Equipment.

(iii) Under APP for Apple Display, Apple will provide technical support for the Covered Equipment and connectivity issues between the Covered Equipment and a Supported Computer.
(iv) Under APP for Apple TV, Apple will provide technical support for the Covered Equipment, software applications that are pre-installed with the Covered Equipment (Apple TV Software) and connectivity issues between the Covered Equipment, a Supported Computer and a Supported Television, meaning a television that meets the Covered Equipments connectivity specifications.
4. What is not Covered?
4.1 Hardware Service. The Plan does not apply to:
(i) Installation, removal or disposal of the Covered Equipment, or the provision of equipment while the Covered Equipment is being serviced;
(ii) Damage caused by (a) a product that is not the Covered Equipment (b) accident, abuse, misuse, liquid contact, fire, earthquake or other external cause, (c) operating the Covered Equipment outside the permitted or intended uses described by the manufacturer, or (d) service (including upgrades and expansions) performed by anyone who is not a representative of Apple or an Apple Authorized Service Provider (AASP);
(iii) Covered Equipment with a serial number that has been altered, defaced or removed, or has been modified to alter its functionality or capability without the written permission of the manufacturer;
(iv) Covered Equipment that has been lost or stolen. This Plan only covers Covered Equipment that is returned to Apple in its entirety;
(v) Cosmetic damage to the Covered Equipment including but not limited to scratches, dents and broken plastic on ports;
(vi) Consumable parts, such as batteries, except in respect of battery coverage under APP for iPod or unless failure has occurred due to a defect in materials and workmanship;
(vii) Preventative maintenance on the Covered Equipment; or
(viii) Defects caused by normal wear and tear or otherwise due to normal aging of the product.
4.2 Technical Support. The Plan does not include:
(i) Issues that could be resolved by upgrading software to the then current version;
(ii) Your use of or modification to the Covered Equipment, the Mac OS, iPod Software, Apple TV Software or Consumer Software in a manner for which the Covered Equipment or software is not intended to be used or modified;

(iii) Third-party products or their effects on or interactions with the Covered Equipment, the Mac OS, Mac OS Server, iPod Software, Apple TV Software or Consumer Software;
(iv) Your use of a computer or operating system under APP for iPod that is unrelated to iPod Software or connectivity issues with the Covered Equipment;
(v) Your use of a computer or operating system under APP for Apple Display that is unrelated to connectivity issues with the Covered Equipment;
(vi) Your use of a computer or operating system under APP for Apple TV that is unrelated to Apple TV Software or connectivity issues with the Covered Equipment;
(vii) Apple software other than the Mac OS, Mac OS Server, iPod Software, Apple TV Software or Consumer Software as covered under the applicable Plan;
(viii) Mac OS software for servers, except when using the graphical user interface for server administration and network management issues on Mac OS Server on a Mac;
(ix) Mac OS software or any Apple-branded software designated as beta, prerelease, or preview or similarly labeled software;
(x) Third-party web browsers, email applications, and Internet service provider software, or the Mac OS configurations necessary for their use; or
(xi) Damage to, or loss of any software or data residing or recorded on the Covered Equipment. Recovery and reinstallation of software programs and user data are not covered under this Plan.
5. How to Obtain Service and Support?
You may obtain hardware services and technical support by accessing the Apple website (
www.apple.com/support) or calling the telephone number listed below. If calling, an Apple technical support representative will answer, request your Plan Agreement Number or Covered Equipment serial number, before providing assistance. Keep your Plan Confirmation document and the original sales receipt for your Covered Equipment and your Plan, as it will be required if there is any question as to your products eligibility for coverage.
6. Hardware Service Options
6.1 Apple will provide hardware services through one or more of the following options:
(i) Carry-in service. Carry-in service is available for most Covered Equipment. Return the Covered Equipment to an Apple-owned retail store or an AASP location offering carry-in service. Service will be performed at the location, or the store or service provider may send the Covered Equipment to an Apple repair service (ARS) location to be serviced. Once you are notified that service is complete, you will promptly retrieve the Covered Equipment.
(ii) Onsite service. Onsite service is available for many desktop computers if the location of the Covered Equipment is within 50 miles (80 kilometers) radius of an Apple Authorized Onsite Service Provider. Certain parts serviceable under do-it-yourself parts
service, as described below, are not be eligible for Onsite service. If Apple determines that onsite service is available, Apple will dispatch a service technician to the location of the Covered Equipment. Service will be performed at the location, or the service technician will transport the Covered Equipment to an AASP or ARS location for repair. If the Covered Equipment is repaired at an AASP or ARS location, Apple will arrange for transportation of the Covered Equipment to your location following service. If the service technician is not granted access to the Covered Equipment at the appointed time, any further onsite visits may be subject to an additional charge.
(iii) Mail-in service. Direct mail-in service is available for most Covered Equipment. If Apple determines that your Covered Equipment is eligible for mail-in service, Apple will send you prepaid way bills (and if you no longer have the original packaging, packaging material) and you will ship the Covered Equipment to an ARS location in accordance with Apples instructions. Once service is complete, the ARS location will return the Covered Equipment to you. Apple will pay for shipping to and from your location if all instructions are followed.
(iv) Express replacement or do-it-yourself (DIY) parts service. Express replacement service is available for certain Covered Equipment products, and DIY parts service is available for many Covered Equipment parts, allowing you to service your own product. If express replacement or DIY parts service is available in the circumstances, the following process will apply.
(a) Service where Apple requires return of the replaced product or part. Apple may require a credit card authorization as security for the retail price of the replacement product or part and applicable shipping costs. If you are unable to provide credit card authorization, service may not be available to you and Apple will offer alternative arrangements for service. Apple will ship a replacement product or part to you with installation instructions, if applicable, and any requirements for the return of the replaced product or part. If you follow the instructions, Apple will cancel the credit card authorization, so you will not be charged for the product or part and shipping to and from your location. If you fail to return the replaced product or part as instructed or return a replaced product or part that is ineligible for service, Apple will charge the credit card for the authorized amount.
(b) Service where Apple does not require return of the replaced product or part. Apple will ship you free of charge a replacement product or part accompanied by instructions on installation, if applicable, and any requirements for the disposal of the replaced product or part.
(c) Apple is not responsible for any labor costs you incur relating to express replacement or DIY parts service. Should you require further assistance, contact Apple at the telephone number listed below.
6.2 Apple reserves the right to change the method by which Apple may provide repair or replacement service to you, and your Covered Equipments eligibility to receive a particular method of service. Service will be limited to the options available in the country where service is requested. Service options, parts availability and response times may vary according to country. You may be responsible for shipping and handling charges if the Covered Equipment cannot be serviced in the country it is in. If you seek service in a country that is not the country of purchase, you will comply with all
applicable import and export laws and regulations and be responsible for all custom duties, V.A.T. and other associated taxes and charges. For international service, Apple may repair or exchange defective products and parts with comparable products and parts that comply with local standards.
7. Your Responsibilities
To receive service or support under the Plan, you agree to comply with the following:
(i) Provide your Plan Agreement Number and a copy of your Plans original proof of purchase, if requested;
(ii) Provide information about the symptoms and causes of the issues with the Covered Equipment;
(iii) Respond to requests for information, including but not limited to the Covered Equipment serial number, model, version of the operating system and software installed, any peripherals devices connected or installed on the Covered Equipment, any error messages displayed, actions taken before the Covered Equipment experienced the issue and steps taken to resolve the issue;
(iv) Follow instructions Apple gives you, including but not limited to refraining from sending Apple products and accessories that are not subject to repair or replacement service and packing the Covered Equipment in accordance with shipping instructions;
(v) Update software to currently published releases prior to seeking service; and
(vi) Make sure to backup software and data residing on the Covered Equipment. APPLE MAY REINSTALL THE COVERED EQUIPMENTS ORIGINAL SOFTWARE CONFIGURATION AND SUBSEQUENT UPDATE RELEASES WHILE PERFORMING SERVICE, WHICH WILL RESULT IN THE DELETION OF ALL SOFTWARE AND DATA THAT RESIDED ON THE COVERED EQUIPMENT PRIOR TO SERVICE. DURING APP FOR IPOD SERVICE, APPLE WILL DELETE THE CONTENTS OF THE IPOD AND REFORMAT THE STORAGE MEDIA. Apple will return your iPod or provide a replacement iPod as the iPod was originally configured, subject to applicable updates. Apple may install iPod OS updates as part of hardware service that will prevent the iPod from reverting to an earlier version of the iPod OS. Third party applications installed on the iPod may not be compatible or work with the iPod as a result of the iPod OS update. You will be responsible for reinstalling all other software programs, data and passwords.
8. Limitation of Liability
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, APPLE AND ITS EMPLOYEES AND AGENTS WILL UNDER NO CIRCUMSTANCES BE LIABLE TO YOU OR ANY SUBSEQUENT OWNER FOR ANY INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO COSTS OF RECOVERING, REPROGRAMMING, OR REPRODUCING ANY PROGRAM OR DATA OR THE FAILURE TO MAINTAIN THE CONFIDENTIALITY OF DATA, ANY LOSS OF BUSINESS, PROFITS, REVENUE OR ANTICIPATED SAVINGS, RESULTING FROM APPLES OBLIGATIONS UNDER THIS PLAN. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE LIMIT OF APPLE AND ITS EMPLOYEES AND AGENTS LIABILITY TO YOU AND ANY SUBSEQUENT OWNER ARISING UNDER THE PLAN SHALL NOT EXCEED THE ORIGINAL
PRICE PAID FOR THE PLAN. APPLE SPECIFICALLY DOES NOT WARRANT THAT (i) IT WILL BE ABLE TO REPAIR OR REPLACE COVERED EQUIPMENT WITHOUT RISK TO OR LOSS OF PROGRAMS OR DATA, (ii) IT WILL MAINTAIN THE CONFIDENTIALITY OF DATA, OR (iii) THAT THE OPERATION OF THE PRODUCT WILL BE UNINTERRUPTED OR ERROR-FREE.
FOR CONSUMERS IN JURISDICTIONS WHO HAVE THE BENEFIT OF CONSUMER PROTECTION LAWS OR REGULATIONS, THE BENEFITS CONFERRED BY THIS PLAN ARE IN ADDITION TO ALL RIGHTS AND REMEDIES PROVIDED UNDER SUCH LAWS AND REGULATIONS. TO THE EXTENT THAT LIABILITY UNDER SUCH LAWS AND REGULATIONS MAY BE LIMITED, APPLES LIABILITY IS LIMITED, AT ITS SOLE OPTION, TO REPLACE OR REPAIR OF THE COVERED EQUIPMENT OR SUPPLY OF THE SERVICE. SOME STATES OR PROVINCES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO SOME OR ALL OF THE ABOVE LIMITATIONS MAY NOT APPLY TO YOU.
Basically what that means, is that it doesn't cover any kind of physical damage, usually just software and some technical support (like if your HDD fails or your Optical Drive won't work...etc)! Your welcome for the short explanation, but if you want/prefer you may read through the terms of service agreement.
