Is AppleCare really worth it?

[sunking101]

Those of you who have taken out AppleCare with your last three or four iPhones, how many accidental damage claims have you made over that period? When you factor in the cost of AppleCare over those three or four phones, plus the amount you spent on the accident replacement fees, have you come out on top? If you bought the S and non-S models each year you could use the same case for both phones and only have to buy two screen protectors. Unless you're the most clumsy person alive surely that should suffice?

 

[Hal~9000]

So do you guys believe AppleCare is truly worth it to buy? Or just another way for them to make money off me?

Just another way for them to make money off of you (they wouldn't offer it unless they were making good profits from it).

That's not to say it might not be worth it for some people, depending on their disposable income level or how clumsy they are with their phone.

For example: Is paying an extra $200 beyond the base MSRP for a 128gb model worth it? That depends on the person. Do they need the peace of mind of that extra space? Do they make enough money to blow an extra $200 for it?

I can tell you for myself paying the extra $100 for the 64gb model (after so many years of having 16gb models) was a breath of fresh air and has made me much less paranoid about apps or photos taking up too much space. So even though I lined Apples pockets a little more, the peace of mind for me was more than worth the extra $100.

It's up to you to decide the cost benefits of AppleCare+ against your own situation and come to a conclusion. Besides you have 60 days to decide...

 

[BenTrovato]

Considering AppleCare is very profitable for Apple that should answer the question. All extended warranties usually work this way. People are paying for peace of mind in today's paranoid device culture - hard to blame Apple for capitalizing on this human condition.

 

[aneftp]

The cost/benefit analysis is never really going to match up for an individual when buying electronic warranty plans. Paying $129 to cover a device that costs between $649 and $949 is assuming there is somewhere between a 13-20% chance you'll need to replace your phone when you aren't eligible to upgrade/trade-in. Add in the $99 incident cost and you're now assuming there is between a 25-35% chance that you will need to replace your phone.

The reason the policies are priced such as they are is because an actuary already knows that, using the law of large numbers, the claims rate is somewhere around 10-15%. Knowing this, they price the policy where you're paying odds of 25-35% and Apple makes a handsome 15-20% profit (or about $20-25) off of every AppleCare plan they sell.

I won't even get into running the numbers based on type of damage happens to the phone. If it's a cracked screen, then you are MUCH better off without insurance and just paying the repair cost without AppleCare. If you believe there's a greater than 25-35% chance of water damage (depending on model) killing your device, then and only then would it make sense for you to buy AppleCare.

Agree. Issue is Apple is adding essentially an "Apple tax" if you go with their iPhone insurance program.

You don't see Apple doubling the price of Apple care on their MacBooks or iMac in the past 3 years. Heck u don't see Apple raising prices or deductible on their comparable iPad AppleCare. It's still $99 and $49 deductible.

http://www.apple.com/shop/product/APP_IPAD_PLUS_AUTO-112700/applecare-plus-for-ipad

Apple is being extremely greedy with their AppleCare for iPhone compared to their comparable iPad.

 

[Hal~9000]

Agree. Issue is Apple is adding essentially an "Apple tax" if you go with their iPhone insurance program.

You don't see Apple doubling the price of Apple care on their MacBooks or iMac in the past 3 years. Heck u don't see Apple raising prices or deductible on their comparable iPad AppleCare. It's still $99 and $49 deductible.

http://www.apple.com/shop/product/APP_IPAD_PLUS_AUTO-112700/applecare-plus-for-ipad

Apple is being extremely greedy with their AppleCare for iPhone compared to their comparable iPad.

While I agree Apple is greedy, the iPhone market is a whole different beast than the Mac or iPad market.

I used to see lots of AppleCare+ abusers brag about how they paid for it (when it was cheaper than it is now) just so they can go caseless and treat it like ****, knowing they can smash it later on and get a brand new one for cheap right before selling it... I don't think you'll see those type of abusers doing that with Macs or iPads since they don't upgrade those as frequently as they do with iPhones and Macs/iPads.

Maybe they perhaps threw off the #s for the amount of iPhone replacements vs AppleCare+ profit needed per plan?

 

[willmtaylor]

i have owned 3 iPhones and 2 galaxy notes since the iPhone 4 has come out, and I am accident prone (have cracked very screen but never cared enough to get them fixed)

Well after purchasing the iPhone 6s+ I am debating ordering AppleCare for my phone.

Just wondering if it is truly worth spending 130 or whatever cost is and than also if anything goes wrong paying the 99$ fee?

Only thing I'm truly concerned for is cracking the screen which I can take to a store and have fixed for 100-140$


So do you guys believe AppleCare is truly worth it to buy? Or just another way for them to make money off me?

This all sounds so familiar:
https://forums.macrumors.com/threads/is-applecare-even-worth-it-anymore.1914626/

 

[takeshi74]

Worth is always highly subjective. If you want to collect opinions then please refer to the countless prior threads on whether or not AppleCare is worth it.
https://www.google.com/search?q=iphone+applecare+worth+site:macrumors.com&oq=iphone+applecare+worth+site:macrumors.com&aqs=chrome..69i57.359j0j9&sourceid=chrome&es_sm=93&ie=UTF-8

If it was universally worth it then everyone would have it. If it was universally not worth it then no one would have it and Apple probably wouldn't bother to offer it. The reality is that you have to make the call for yourself and determine what measures (AppleCare isn't the only option) you're willing to take to protect your stuff.

Or just another way for them to make money off me?

These programs are always designed to make money for the house. Deciding whether to go with one or not isn't really about the warranty itself but the individual's preferences. Running the numbers can help you decide but you have to consider everything else. Some people pick it for convenience, peace of mind, etc. Your call whether those reasons -- and others as this isn't an exhaustive list -- matter to you or not.

I am honestly only planning

Be careful relying on that when it comes to accidents. I've never planned on getting into the accidents that I ended up getting into. That's why they were accidents.

 

[AbsynthMinded]

I don't personally think any of these care plans are worth it if there is still a means to replace/repair the phone cheaper than buying a new one outright (covered under limited warranty, pay a deductible, etc.). I have never gotten it because in all my years of owning devices I have never caused noticeable damage (only small scratches that you have to use proper light and a lot of scrutiny to see). Mind you I have dropped my phone, just never on hard surfaces or from some substantial height. I also don't put cases on my phone.

That is not to say AC+ is useless or a waste of money, but for me it would be. This question can only be truly answered by you but you can use the experience of others to help you make that decision.

TL;DR: If you are a careful person, no its not worth it when basic protection is offered free.

 

[missbing]

I ALWAYS get it. Even if I'm not accident prone. I believe the cost of replacing the screen without it is higher than the cost of Apple care and the screen replacement fee. Plus it extends the warranty for one year.
For me, that's worth it.

That's not true. You're paying $129 for AC then $99 for each accident. That's $228 for the first accident. If you break your screen w/o AC then you're only paying $100 to replace your screen.

I don't see AC being worth it, even if you damage your phone beyond repair. If you damage your phone and need a replacement you paid $228, but if you don't have AC you pay slightly more at $299-$329. In this case you're only paying $70-100 more IF you destroy the phone and that's a big IF.

 

[Farsider]

Its not that black & white. You're covered for a 2nd incident also which swings the costs back in AppleCare's favour. Plus you also get a 2nd year warranty. Apple seem to waiver the Express Replacement admin fee too. It won't go down on your claim history also thus raising the price of other premiums in your name.

Its just like any other Insurance product. You only need it, when you need it.

 

[freedomisle]

The cost/benefit analysis is never really going to match up for an individual when buying electronic warranty plans. Paying $129 to cover a device that costs between $649 and $949 is assuming there is somewhere between a 13-20% chance you'll need to replace your phone when you aren't eligible to upgrade/trade-in. Add in the $99 incident cost and you're now assuming there is between a 25-35% chance that you will need to replace your phone.

The reason the policies are priced such as they are is because an actuary already knows that, using the law of large numbers, the claims rate is somewhere around 10-15%. Knowing this, they price the policy where you're paying odds of 25-35% and Apple makes a handsome 15-20% profit (or about $20-25) off of every AppleCare plan they sell.

I won't even get into running the numbers based on type of damage happens to the phone. If it's a cracked screen, then you are MUCH better off without insurance and just paying the repair cost without AppleCare. If you believe there's a greater than 25-35% chance of water damage (depending on model) killing your device, then and only then would it make sense for you to buy AppleCare.

Well said!

I certainly don't agree with the incident fee with AppleCare+. Essentially you're paying $129 to get a reduced rate repair just in case you accidentally damage your phone.

If they reduced the cost and removed the incident fee & instead provide only 1 accidental damage cover it would be more appropriate for the average user. As it stands it's just another product for Apple to sell & make profit on.

I agree that the average user will not benefit from AppleCare+ and that is just how insurance works.

 

[Farsider]

Well said!

.......and that is just how insurance works.

Yep - no different than your Car or Home insurance.

 

[airb330]

I have always found it to be worth it for me, as I seem to have bad luck with electronics right after the warranty goes. I've had 3 iPhone 5 replacements due to battery issues. Last time it was "bent" so I did end up using a $49 replacement, but I think it was only "bent" due to the battery getting extremely hot when it charged.

I completely agree with everyone else though, it really is subjective and by its very nature as an insurance program, it isn't in our favor it is in apple's. If I didn't rely on my phone so much (no landline, etc) as a work & personal phone, then applecare probably wouldn't be worth it to me. Since I can drive to 3-4 different Apple Stores in 30-40 minutes too, it's worth it to me, but maybe wouldn't be otherwise. If my phone is inoperable or acting very strangely, I can get a new refurbished phone quickly it is a nice piece of mind at a cost though.