Declared Value of a New iPad

Discussion in 'iPad' started by bjmach, Mar 19, 2012.

  1. bjmach macrumors 6502

    Oct 10, 2008
    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.
  2. soco macrumors 68030


    Dec 14, 2009
    Yardley, PA
    I'm sure Joe or Jane Customerserviceperson just typed that lickety-split without thinking.
  3. Omikronz macrumors newbie

    Mar 10, 2008
    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.
  4. gnasher729 macrumors P6


    Nov 25, 2005
    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.
  5. ano0oj macrumors 6502

    Apr 20, 2010
  6. KPOM macrumors G5

    Oct 23, 2010
    FedEx automatically includes $100 of coverage with their express services. If neither you nor the retailer orders additional insurance, $100 is the default.
  7. Omikronz macrumors newbie

    Mar 10, 2008
    When you get a pre-paid label from Apple you don't have the choice of setting the declared.
  8. Redjericho macrumors 6502a

    Sep 16, 2011
  9. Eulinne macrumors newbie

    Mar 24, 2012
    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.
  10. SR45 macrumors 65832


    Aug 17, 2011
    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.
  11. chrfr macrumors 604

    Jul 11, 2009
    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.
  12. Chupa Chupa macrumors G5

    Chupa Chupa

    Jul 16, 2002
    $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.

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