Applecare is kinda weird, in that it costs the same regardless of the cost of the device. This means that it may not be that worth it if I am just getting the base model iPad (may as well just save on the warranty and self-insure), but if I opt for the maxed out version, the amount is so small compared to the overall cost that it seems like a no-brainer.They aren’t doing you any favours though as they charge you for a replacement iPad and you have essentially bought two devices. They benefit because they keep and refurb your broken iPad at minimal cost to them and sell on for hundreds. You walk away with a £699 iPad that you’ve paid a total of £1398 for on a ‘buy 2 walk away with 1’ deal lol.
It would seem that I am essentially paying for convenience at the end of the day. Apple replaces the device right away for me, so I walk away with a functioning device, rather than having to wait the 1-2 weeks it would take to repair it. My old iPad stays with them and whatever they do with it from then on is their business.
I guess that's why AppleCare has been profitable for them overall.