Declared Value of a New iPad

bjmach

macrumors 6502
Original poster
Oct 10, 2008
315
0
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.
 

Omikronz

macrumors newbie
Mar 10, 2008
18
0
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.
 

gnasher729

macrumors P6
Nov 25, 2005
17,177
3,132
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.
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.
 

KPOM

macrumors G5
Oct 23, 2010
14,658
3,026
FedEx automatically includes $100 of coverage with their express services. If neither you nor the retailer orders additional insurance, $100 is the default.
 

Omikronz

macrumors newbie
Mar 10, 2008
18
0
FedEx automatically includes $100 of coverage with their express services. If neither you nor the retailer orders additional insurance, $100 is the default.
When you get a pre-paid label from Apple you don't have the choice of setting the declared.
 

Eulinne

macrumors newbie
Mar 24, 2012
9
0
Minnesota
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.
 

SR45

macrumors 65832
Aug 17, 2011
1,500
0
Florida
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.
 

chrfr

macrumors G3
Jul 11, 2009
8,307
2,595
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.
 

Chupa Chupa

macrumors Pentium
Jul 16, 2002
15,089
7,369
$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.