All extended warranties are a rip. Apple's are not any different. But like I've said a couple of times already, as an Apple stockholder I'd encourage everyone to buy AppleCare. I'm just happy that I've never bought any.
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Is Apple Care Worth it?
- Thread starter Humblebee
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All extended warranties are a rip. Apple's are not any different. But like I've said a couple of times already, as an Apple stockholder I'd encourage everyone to buy AppleCare. I'm just happy that I've never bought any.
Not to beat this into the ground since we are clearly going in circles and you're obfuscating. (look it up)
I'll try one last time to explain this to you in as simple English as I can:
I find value in the coverage and will have considered it worthy even if 3 years go by without me using it a single time. Your "rip" is my valued purchase. It's not a lottery for me. I value the peace of mind I get knowing I am covered SHOULD anything go wrong. That's called insurance. Get over it already. Apple Care is a product like any other the company sells and has a price. The company obviously profits from its sale. No one is under any obligation to purchase it.
I'm perfectly willing to accept that you don't find it worthy. The difference between you and I is that you won't see me calling you foolish to hold that opinion.
I hardly have to look it up, and no, I am not obfuscating. Far from it. In fact I am very clearly stating my position, which happens to be objective. These threads are invariably full of comments like "AppleCare is definitely worth it," which from a monetary standpoint is objectively untrue. Extended warranties are very profitable for the sellers, which at best is a far cry from "definitely worth it." If it makes you feel better to buy AppleCare, then by all means, have at it. As a stockholder, I salute your decision.
I didnt read the rest of the post but this is 100% false even though a lot of people think its ttue. Look at any major stores repair record. I worked for Firedog, Geeksquad, and now a big name company (sorry, cannot mention which company) doing tech repair work. I would say honestly a good 80% of computers needing repair are after their 1 year warranty.
Im a technician and I always buy the warranty because some things, such as power surge cannot be fixed, only replaced. And just because its hooked up to a surge protector doesnt mean anything really. Those are for minor fluctuations in the line. There have been many instances where a house has gotten struck and everything on the surge protector got hit as well.
Think of it this way: If apple care is for three years (or however long it is) and its $160, Thats roughly $54 a year to know that whatever happens to your computer its taken care of and you dont have to go buy another one for 2k.
And, not to sound like I am picking on IJ Reilly but anyone claiming "All extended warranties are a rip!" is a very uneducated consumer in my opinion. Unless your a technician who has seen the repairs come in and talked with the customers who are relieved that they bought the warranty when their item dies then you real have no ground to stand on for your statement.
Pardon me for letting my frustration at going in circles with you get the best of me and jumping into the mud with you on that one.
It's not your place to make such a statement -OR- judgement for others. You're only speaking for yourself and assuming that the only way one gets the purchase value of their coverage is if they actually use it for repairs in excess of its cost.
Worse yet, you insinuate that those who elect to purchase it are foolish to do so since YOU consider it a waste of money. I understood your "I urge everyone to buy it because I'm an Apple shareholder" line the first twenty times you used it.
If the person who purchases it feels justified in doing so it is absolutely worth it. They're paying for the sense of security as much as the free repairs they will receive if needed.
Yes, Apple profits from the sales of the coverage. They profit from every product they sell.
See above.
Quite right. It is $5 a month for my iMac ($120 for two additional years)
Let's see, that's approximately 17 cents a day... I spend 10 times more on coffee.
Oh, I don't know... IJ's pretty good at dishing it out so one would hope he can take it.
I'm glad I bought my Apple Care and can recommend it highly.
Not to worry, I don't feel picked on.
An authority no less than Consumer Reports concludes that extended warranties are a rip. They like Apple's extended warranty better than some because it comes with telephone tech support, but their general conclusion about the value of these policies is very clear: They are a rip. I believe a link to the Consumer Reports article on extended warranties has already been posted to this thread.
Pardon me for letting my frustration at going in circles with you get the best of me and jumping into the mud with you on that one.
Sorry, you can't jump in the mud with me because I'm not in the mud.
Sorry if you thought I'd insinuated as much, but did not use the word "foolish," because I did not mean "foolish." The word I did use was "naive," which I think fits someone who buys an extended warranty in the belief that they are likely to collect more than they've paid out. From reading so many of these threads on AppleCare, I know a lot of people do believe this. I am limiting my characterization as naive to them.
I'm not trying to tell anyone how they should feel, but I think they way they feel might change if they were better informed. Insurance is always a losing bet over time, which is how insurance companies make their money. We buy insurance policies for security, and especially against possible loses we can't afford to pay on our own. If that's a computer to you, then again, by all means, insure it. But if you think you're likely to come out ahead financially, then you are better off forgetting that notion, because the entire system is set up to prevent that from happening.
I think IJ and the rest of you misunderstood my lottery analogy.
I meant it to show how you never know when something will happenThat ONE time you don't buy an extended warranty, according to Murphy's Law, will be the one time your computer will have a problem at day 366!
In addition, as some have pointed out, it gives peace of mind. If it is indeed, as someone has pointed out, only .17 cents a day for that, that is a small price to pay.
Plus, at least with Apple's you have a whole 364 days to decide, you're not pressured like with other warranties where you have to buy it upfront.
I meant it to show how you never know when something will happenThat ONE time you don't buy an extended warranty, according to Murphy's Law, will be the one time your computer will have a problem at day 366!
In addition, as some have pointed out, it gives peace of mind. If it is indeed, as someone has pointed out, only .17 cents a day for that, that is a small price to pay.
Plus, at least with Apple's you have a whole 364 days to decide, you're not pressured like with other warranties where you have to buy it upfront.
No, I understood it. Perhaps it implies more than you realized. It's "you cannot win if you do not play" reasoning, which means you need to place lots of bad bets on the off chance that one will pay off some day.
I would never pretend to tell anyone how much their "peace of mind" is worth. If you believe that Murphy's Law overrides all other calculations, then clearly you need to be insured to the hilt.
This is better than the matte vs. glossy threads, and has about as much factual basis for the arguments.
The personal decision to purchase APP is a value proposition, one which is variable for each purchaser. Every person has to gauge both the perceived or anticipated intrinsic value, as well as assign an extrinsic value.
The perceived intrinsic value is an individual calculation that the probability of use of the APP is a number greater than zero, and is sufficiently close to 1 that the cost of APP vs. the cost of probable repair weighs in the favor of APP. This is the logical argument.
The extrinsic value is the sentimental one, the "peace of mind" that has been referred to, and even though it has no absolute cost equivalency, nonetheless holds significant value to the purchaser. It is, in fact, the stronger of the two values (intrinsic and extrinsic) in the purchase decision, as the intrinsic, while easily understood, cannot be easily calculated to any degree of certainty.
That is why all the marketing for APP (and other extended warranties) address the extrinsic value proposition more strongly.
Bottom line though, it is a personal calculation, and not one that anyone can say with certitude is a correct or incorrect decision.
The personal decision to purchase APP is a value proposition, one which is variable for each purchaser. Every person has to gauge both the perceived or anticipated intrinsic value, as well as assign an extrinsic value.
The perceived intrinsic value is an individual calculation that the probability of use of the APP is a number greater than zero, and is sufficiently close to 1 that the cost of APP vs. the cost of probable repair weighs in the favor of APP. This is the logical argument.
The extrinsic value is the sentimental one, the "peace of mind" that has been referred to, and even though it has no absolute cost equivalency, nonetheless holds significant value to the purchaser. It is, in fact, the stronger of the two values (intrinsic and extrinsic) in the purchase decision, as the intrinsic, while easily understood, cannot be easily calculated to any degree of certainty.
That is why all the marketing for APP (and other extended warranties) address the extrinsic value proposition more strongly.
Bottom line though, it is a personal calculation, and not one that anyone can say with certitude is a correct or incorrect decision.
Thanks sturigdson. You said that quite well. I'm looking to buy a blackbook and probably get applecare with it. I'm also gonna get a 23" display but will not get applecare for that. Thanks for your help.
Lotteries are bad bets I will grant you (I never play it). However, insurance is not a bad bet. It is there to help you. Are you a member of AAA or otherwise get roadside assistance for your car? Yes, you may never use it, but that one time you don't have it, is the time you'll need it(and it costs about the same as one tow or less), trust me (or Murphy).
What about Medical Insurance? Do you have that or not? You may think oh I'm healthly, nothing bad will ever happen to me....and while you're thinking that, fall through a manhole and need to get major surgery!
I agree entirely. But I do believe that understanding the financial aspects of the decision will factor into the personal decision about what constitutes "peace of mind," at least for some people. You don't have to read many of these threads to realize that a great many believe (erroneously) that AppleCare is a likely payoff. Understanding that this isn't true won't necessary drive everyone to the same decision I would make, but I'd like to believe that some will find it to be useful information nonetheless.
This goes to a point I've already made. You should insure against potential losses which you can't afford to pay comfortably yourself. Insuring against a loss which you could easily afford to pay yourself is a bad bet. Which losses you can afford to cover out-of-pocket is a personal decision, based on your own financial situation.
One other point which I think deserves to be considered in the instance of insuring consumer electronics products is: what is the replacement value of the product at the end of the policy term? Most consumer electronics devices plummet in value. In three years they are likely to be worth perhaps half of their original price. Now how does the insurance calculation look?
You'll be knocking on Aluminum when something goes wrong with your Imac after 1 year
Would you pay more for a used Macbook Pro if it had 12-24 months of Applecare?
Purchasing a refurbished laptop and applecare (after 11 months) for a lower price than a new system without applecare is a good strategy. You have additional coverage if you keep the system for 3 years and higher value if you sell.
Applecare on a stationary desktop is questionable. However, it is a pain in the rear to get into a iMac to replace the hard drive. Plus, AC on a desktop is cheaper than a laptop.
Purchasing a refurbished laptop and applecare (after 11 months) for a lower price than a new system without applecare is a good strategy. You have additional coverage if you keep the system for 3 years and higher value if you sell.
Applecare on a stationary desktop is questionable. However, it is a pain in the rear to get into a iMac to replace the hard drive. Plus, AC on a desktop is cheaper than a laptop.
Then you should most definitely get AC. Most people can't afford to pay comfortably to repair a $1000+ laptop or desktop ( at least from what I read what it costs to repair an Apple). It's different if it's a couple hundred dollar iPod.
Why would you even mention that on an APPLE thread. Apple products sustain their value well. I see used MB's selling for 600+ and some of these are CD's!!! If you sell with it with AC, you get more bidders and a better price. How is it looking now?
Bingo. The ratio of APP's sold vs. the number actually used has got to be pretty damn small. But, it's ultimately the individual's definition/calculation of likelihood that is the critical factor. Assuming it's between 0 & .1 (anything over that, and nobody would buy the thing in the first place), then what's the cost/risk ratio that provides the appropriate perceived value?
It's not linear, either. If I calculate that the possibility of failure is 1%, and APP is a good value at X, then would a 10% probability be worth 10X? Not on your life.
In my case, I usually never bought APP because my experience has lowered my expectation of failure, thereby decreasing the value of APP. However (you knew that was coming!), when I bought the Blackbook, I bought APP without a second thought. Why? My experience with Apple notebooks was nonexistent (no prior data to make a probability determination, so start at a +/- 0), and the use will be mobile and active, traveling through airports about 4X per week (projected probability of failure now increases).
If I get through three or so years with zero failures, then the odds of my buying APP for the next laptop decrease. If I have even a single use of it, the chance increases. For me, it's always a constant reevaluation, a calculated risk in re the whole cost/benefit thing.
Then you should most definitely get AC. Most people can't afford to pay comfortably to repair a $1000+ laptop or desktop ( at least from what I read what it costs to repair an Apple). It's different if it's a couple hundred dollar iPod.
Why would you even mention that on an APPLE thread. Apple products sustain their value well. I see used MB's selling for 600+ and some of these are CD's!!! If you sell with it with AC, you get more bidders and a better price. How is it looking now?
As I've said many times already, it's an individual decision. I've been buying Macs for well over 20 years now. I have never bought an AppleCare policy and have never regretted this decision. It would have been money straight out the window. Even if I'd managed to use it once or twice, I would still have paid out more than I received in benefits.
Apple products may retain their value "well" but they aren't magical. Check out the resale value of a three-year-old MacBook, if you don't believe me. Even by your own numbers they are worth perhaps half of their original retail price at that point. This should factor into your "replace or repair" calculation.
That's a lot more analysis than most people would do, but I see your point, which is well made.
Applecare is almost 300 bucks (actually its probably around there after tax), computers with and without applecare on ebay dont have price differences of $300. I think a more realistic amount would be around $25-50 extra for active applecare. Its not going to affect the price very much, people will pay the same prices with or without, and if they do pay extra you can be damn sure its not going to be $300 extra.
Hah
First off, let me just say that I absolutely adore the fact that, somehow... God knows how, but somehow... people are arguing back and forth, getting catty with each other, over an extended AppleCare warranty. Give it a break, ladies.
Secondly, for what it's worth, original poster... I am completely thankful that I bought AppleCare when I bought my PowerBook 12"... The SuperDrive crapped out on me a few times (long story short, I spent a bunch of time burning my mp3's to CD since an old roomie stole my collection), and AppleCare made sure that I didn't have to pay for the replacement. Also, at some point last year, I had a bunch of stuff wrong with my PB from overuse (the fan was grinding, sleep light wasn't working, the latch wasn't closing, superdrive again), and I sent it to be repaired, and I had it back in 3 days with everything fixed.
So yeah, AppleCare is worth it, because if you're gonna pay to get those things fixed out-of-warranty, it's gonna suck
First off, let me just say that I absolutely adore the fact that, somehow... God knows how, but somehow... people are arguing back and forth, getting catty with each other, over an extended AppleCare warranty. Give it a break, ladies.
Secondly, for what it's worth, original poster... I am completely thankful that I bought AppleCare when I bought my PowerBook 12"... The SuperDrive crapped out on me a few times (long story short, I spent a bunch of time burning my mp3's to CD since an old roomie stole my collection), and AppleCare made sure that I didn't have to pay for the replacement. Also, at some point last year, I had a bunch of stuff wrong with my PB from overuse (the fan was grinding, sleep light wasn't working, the latch wasn't closing, superdrive again), and I sent it to be repaired, and I had it back in 3 days with everything fixed.
So yeah, AppleCare is worth it, because if you're gonna pay to get those things fixed out-of-warranty, it's gonna suck
Here's a little "what if" game. For those that would not ordinarily buy APP, would this alter your decision in any way: If you bought APP with the Mac at time of initial purchase it added $150, but if you purchased APP separately post-Mac purchase it would be $300. All other terms & conditions the same. Would you be more inclined to add APP at the purchase?
Absolutely. It changes the numbers game a ton, given that most repairs are a flat rate $300, and that you're much more likely to get a substantial chunk of $150 back from increased resale value than $300.