Getting AppleCare as anniversary of iPhone 4's launch approaches

Discussion in 'iPhone' started by eagleglen, Jun 4, 2011.

  1. eagleglen macrumors 6502a

    eagleglen

    Joined:
    Oct 2, 2009
    Location:
    San Diego, CA
    #1
    If you got your iPhone 4 at launch last year, your year warranty is about to expire. I didn't care about this with previous iPhones because an update model was released at about the same time. This year, however, it looks like we will be using the same iPhone until at least September. My year warranty expires on June 22, so I image I should buy AppleCare sometime before then. I think it's going to be $65 for the additional year of warranty coverage, although I'll probably only use it for three months.

    Is this a concern for anyone else? Am I just being paranoid? Do you think having AppleCare will increase the value of my iPhone 4 when I go to sell it in September?

    Thanks for you're feedback.
     
  2. chr macrumors regular

    Joined:
    Feb 11, 2011
  3. jenzjen macrumors 68000

    Joined:
    Aug 20, 2010
    #3
    It "helps" resale value because you've paid more for it, but you're actually losing more money - which is what you're trying to avoid.
     
  4. MaxBurn macrumors 65816

    MaxBurn

    Joined:
    Nov 25, 2010
    #4
    I got it because I don't see them getting a jailbreak right away for the 5 and I would rather have a jailbroken 4 than a 5.
     
  5. edk99 macrumors 6502a

    Joined:
    May 27, 2009
    Location:
    FL
    #5
    ALL extended warranties are a total waste of money.
     
  6. andybno1 macrumors 68040

    andybno1

    Joined:
    Nov 6, 2007
    Location:
    Liverpool, UK
    #6
    I got my applecare day of iPhone 4 purchase as I knew I'd be staying put for the 2 year contract I'm in I like the apple care as I got a iPhone 3G second hand for 6 months which had applecare on it and yeh I had issues couple months after I got it and was very happy with the service got a replacement on the spot well outside the warranty.
     
  7. solowmodel macrumors 6502

    Joined:
    Jan 11, 2011
    #7
    Speaking from my experience, student discount + apple care for MBP has saved hundreds of £'s.
     
  8. tbayrgs macrumors 603

    tbayrgs

    Joined:
    Jul 5, 2009
    Location:
    Florida, USA
    #8
    Totally disagree. I've had a couple of Apple devices replaced after the initial year of coverage thanks to Applecare.
     
  9. nostresshere macrumors 68030

    Joined:
    Dec 30, 2010
    #9
    So, how many times have you or anyone you know had to use their warranty?
     
  10. CalBoy macrumors 604

    CalBoy

    Joined:
    May 21, 2007
    #10
    It doesn't make any sense to spend 35% of the maximum repair cost (Apple only charges $200 to give you a new iPhone, even if you bring in a completely shattered one) for a phone you may only have for another 1-4 months.

    It doesn't even make sense for the 12-month period.

    Keep one thing in mind; Apple makes more than 50% profit on Applecare. That means that for each person who buys $69 of Applecare, Apple only expects to spend $34.50 on repairs.

    PT Barnum's famous words seem appropriate here...
     
  11. tbayrgs, Jun 5, 2011
    Last edited: Jun 5, 2011

    tbayrgs macrumors 603

    tbayrgs

    Joined:
    Jul 5, 2009
    Location:
    Florida, USA
    #11
    So possibly spending $200 instead of $69 is better in what scenario? As an INDIVIDUAL consumer, I'm not concerned with screwing Apple out of their potential profit but rather, trying to minimize my expense. Applecare is insurance. So using your logic, we shouldn't get automobile insurance either because the insurance industry is set to make a profit by processing less claims than the income from premiums?

    You want to roll the dice, go right ahead. Most other companies, I'm probably right there with you because getting a warranty claim approved can be like pulling teeth but in my experience, that's not the case with Apple. For example, I brought in a first gen. Apple TV b/c of a likely HDD failure. The rep at the Genius Bar listened to my explanation of the problem, got a new one from inventory and had me on my way in a matter of minutes--didn't even open the box with my old one to verify the problem. I personally find the peace of mind from Applecare worth the expense.
     
  12. jenzjen macrumors 68000

    Joined:
    Aug 20, 2010
    #12
    The prior poster's argument is about the relative cost, so your auto insurance analogy is off ... think about how many people would buy insurance if (a) wasn't required and (b) cost $17,500 for a $50,000 car over 2 years.

    I think the prior poster would agree that if the iPhone warranty was inline with auto costs (assume $2,500 over 2 years for the same $50,000 car or 5%), he'd probably be more than willing to pay for that coverage.
     
  13. MotleyGrrl macrumors 6502

    MotleyGrrl

    Joined:
    Jun 15, 2010
    Location:
    Chicago, IL
    #13
    I'm usually not one to buy insurance, but after the issues I had with my 3G just days after my warrantly expired, the cost of applecare is worth my sanity. 2 of my friends also had their iphones die within a month of the warranty running out.
     
  14. JLemm macrumors regular

    Joined:
    Sep 12, 2008
    Location:
    Cincinnati, OH
    #14
    I usually get the new iphone every year, but since the rumor is that it's an iphone 4s i'm just going to get apple care and wait till next year! :p
     
  15. CalBoy macrumors 604

    CalBoy

    Joined:
    May 21, 2007
    #15
    In the scenario where 9/10 times you won't ever have to spend a dime.

    Remember, AppleCare only covers product defects. If you drop your phone on concrete and it shatters, the $69 you spent on AppleCare is worth nothing. The odds that a phone will suffer an expensive malfunction within months 13-24 of its life are minimal. That's exactly why Apple sells the AppleCare.

    The chances that you as an individual customer will need to get a part repaired that isn't your fault is small. Even if it does happen, you can afford to cover it. Imagine for a moment that you consistently bought one iPhone every 2 years, and that you purchased AppleCare on every single phone. After 10 phones you would have spent $690 on Applecare. However, statistically you would only have needed ONE phone replaced. That means you spent $690 to protect yourself from $200 of losses. That simply makes no sense at all.

    The purpose of insurance is to help you recover from losses that aren't easy to replace. A house is too expensive for 99% of us to replace if it were to burn down. A car accident can cause thousands of dollars in liability which 99% couldn't afford to pay on our own. It makes sense to pay an insurance company a small fee (usually about 5-10%) to pool our collective risk in that situation.

    It makes no sense to pay a 50% fee to pool risk for an item you can replace without financial trouble. That's why we don't take out insurance on our clothes, shoes, or books.

    If that's your preference, then by all means, buy it. Just don't try to assert that it's a net benefit to you financially, because it just isn't. We all treat ourselves to personal comforts, and maybe the peace of mind AppleCare offers you is one of yours. Just don't think it's a financially wise move, because, again, it isn't.

    I don't think those kinds of margins are possible with a warranty though. I think the very cheapest Apple could sell AppleCare on the iPhone for (and not lose money) would be about $35. That's still 17.5%, which is a lot to pay for an item that isn't very expensive to begin with.
     
  16. bowlerman625 macrumors 68020

    bowlerman625

    Joined:
    Jun 17, 2009
    Location:
    Chicago, IL area
    #16
    I did the same recently. I bought it at a discounted price of $55 on eBay from a highly-rated seller.........
     
  17. tbayrgs macrumors 603

    tbayrgs

    Joined:
    Jul 5, 2009
    Location:
    Florida, USA
    #17
    Well unfortunately (or fortunately, I guess), I've had to have 2 of the 3 products for which I've purchased Applecare in the past replaced during the second year so for me, financial it was a benefit (spent about $130 vs. $400 for cost of replacement). I've also had 2 other products replaced within the first year so while the statistical odds may say I shouldn't need it, reality has proven otherwise.

    I understand your logic and your argument certainly is true IF my experience falls in line with those statistical odds. Over a larger sample it may likely not work out in my favor but the statistical odds aren't a certainly--my personal experience has shown that. Admittedly, I also wasn't aware replacement was only $200 for an iPhone (even the 32 GB units?)--thought I'd be shelling out full out of contract price of $600 to replace it so $69 seemed very reasonable.
     

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