I had preordered a new Ipad from Apple 16GB. Decided I wanted a little bit bigger size and went to Walmart 1201 and picked up a 32GB. Saturday morning I called apple and initiated a pre paid return label to return the 16GB to them. When I went to print out the Fed Ex label that Apple sent me, it says on it the declared value is $100. That can't be what it costs Apple to make a new iPad? Was just curious on why the declared value would be so low on a $499 iPad. Anyways, nothing major just posted it up for discussion. Just curious.
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Declared Value of a New iPad
- Thread starter bjmach
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I just did the pre-paid labels for a Cinema Display I am returning. It too had a declared value of $100.
It's probably cheaper to take the chance that a small amount of product will be damaged than to pay higher costs for insurance.
The question is if Apple holds the customer responsible at all if it does get damaged.
It's probably cheaper to take the chance that a small amount of product will be damaged than to pay higher costs for insurance.
The question is if Apple holds the customer responsible at all if it does get damaged.
Fedex breaks x% of all iPads in such a way that the insurance has to pay. Apple has to pay insurance for all iPads. The higher the declared value, the more the insurance cost and the more the insurance pays out. Seems that damages are so rare that Apple rather pays less for insurance and risks not getting paid if an iPad gets broken or lost in transit.
When you get a pre-paid label from Apple you don't have the choice of setting the declared.
A friend of mine noticed this a while back and when they asked apple about it they told them that it was to deter theft aka less likely to steal something with a lower value. Dunno if the apple person was being honest or not but that's what my friend was told.
UPS automatically gives a $100 insurance as well, unless the customer opts for a higher amount and pays for this. FedEx is the same and as has been stated, Apple is opting to pay less so as not to pay more for the return. I bet one can increase that amount from FedEx if you want to.
For companies that ship a lot of high value products, it's not cost effective to use the FedEx or UPS insurance. They will buy insurance from a 3rd party company and save money doing so. The $100 is preprinted in there so that you do not write in a higher value and cost them more unnecessarily.
$100 insurance is the max amt FedEx and UPS will allow a shipper to declare before levying an excess insurance fee. Obviously Apple has made a corporate decision that the cost saved by not paying for additional insurance is greater than the benefit of recouping the loss of 1 in x number shipped.