I agree with you in general (eg. Extended warranty of TVs for example). And the assumption is there's no design flaws on the product itself, thus any damages solely rely on the user. In this normal case, extended warranties are not worth the money.I don't think you are understanding my point at all. I understand exactly how business works... My point is that extended warranties are not worth it for a consumer in most cases. The reason it's that way is because of how businesses work (IE working in profit on the warranty itself). Just because a business offers a service doesn't mean the service is a good value for the consumer. It's purely the math I'm referencing here. Yes, the product will have a markup, and you don't get any benefit of the product if you don't pay the markup to support the business. But the warranty is ONLY buying you peace of mind against a surprise cost. You don't NEED the extended warranty product to enjoy the core product the same way. It's a bad financial decision to buy extended warranties. Period. Companies offer them because people will buy them anyways and they can rake in more money.
The problem with Apple devices is that sometimes the fault is due to Apple's own design flaws, and Apple's attitude of "you're holding it wrong" just made the customer without Applecare on a disadvantage. Consumers ending up paying for repairs that are not due to their faults.