That has long been my contention. For example, in 2001 I bought a
Samsung VCR from Sears on sale for C$95. I didn't buy the extended
warranty, but when the machine was nearly a year old, Sears customer
service phoned to ask if I would like to lock in extended coverage
before the one-year warranty expired.
"How much will that cost?" I queried politely. The answer was
something like C$75. "But I only paid $95 for the machine," I
responded. "Does spending more than three-quarters that figure on
extra warranty coverage make sense to you?"
The person at the other end agreed that it probably didn't. The
VCR is still working fine after five years of service. If it breaks,
you can get higher-spec ones today even cheaper.
Consumer Reports notes that retailers push extended
warranties and service plans hard because they boost profits
substantially. Stores typically keep 50% or more of what they charge
for extended warranties, which is a lot more margin than they get
selling actual products.
However, CR reasons that it's relatively unusual for products to
break within the extended-warranty window (typically around three
years) based on their research data, and if they do break, repairs
(or in the case of my VCR actual replacement) often costs about the
same as the cost of the warranty.
Indeed, I've never purchased an extended warranty for anything,
including AppleCare
for the new Apple computers I've bought over the past 14 years, but
interestingly, one of the exceptions Consumer Reports makes to
it's "don't buy extended warranties" advice is AppleCare coverage for
an Apple computer - because it includes extended tech support and
Apple only offers a stingy 90 days of free phone phone tech
support.
Well, it's an argument. Whether it makes sense for you depends on
your risk tolerance and to a large degree a roll of the dice. The
last time I used Apple phone support was in 1997, and as I recall,
they weren't a whole lot of help - I knew more about the problem than
they did. However, a single anecdote is just that, and if you
anticipate needing phone support beyond 90 days, perhaps CR's advice
is sound for you, but it's expensive hand-holding.
Current US AppleCare plan prices:
Mac mini, $149
iMac/eMac, $169
MacBook/iBook, $249
Power Mac/Mac Pro, $249
MacBook Pro/PowerBook, $349
AppleCare coverage includes:
Extends telephone technical support from 90 days to three
years from computer's purchase date
Extends hardware repair coverage to three years from
computer's purchase date, including:
Onsite service for desktop computers (not available in all
locations)
Global repair coverage
Provides dedicated access to web-based support resources=
Includes diagnostic software tools (TechTool Deluxe from
Micromat)
Note that while the MacBook Pro/PowerBook extended warranty is
more expensive, notebook repairs (if/when you do them) tend to be
pricey. I've been fortunate, I guess. Most of my Macs have been
portables, and the only major component failure I've has was a fried
processor in my WallStreet
PowerBook - but that happened at 3.5 years, so AppleCare wouldn't
have helped anyway.
Even my 700 MHz G3 iBook,
which statistically is one of the most problem-prone laptops Apple
has made, has been trouble-free for nearly four years now. I pondered
buying AppleCare for it but decided against, and I'm none the worse
for it.
Consumer Reports says laptops have among the highest repair
rates among the products they track, with 43% of three to
four-year-old machines requiring repairs. But as with my WallStreet,
many of these problems occurred outside the coverage period of a
typical computer extended warranty anyway, and a sizable proportion
of them would be due to drops or liquid spills - accidents that
extended warranties usually don't cover.
Double Your Warranty for Free?
Another point to consider before purchasing an extended warranty
is that many major credit cards will double the manufacturer's
warranty period (often capped at two years) on purchases made with
their card. However, be sure to read the fine print. My credit card
company will double the warranty on a computer purchased, but not on
machines used for business purposes, such as my PowerBook.
The phone tech support issue aside, if you buy an expensive
machine like a 17" MacBook
Pro and the big screen or the logic board fails (as unlikely as
that would be statistically), you'll thank yourself for having ponied
up for AppleCare.
On the other hand, with a MacBook, like the the iBook, before it,
I'm inclined to the view that AppleCare makes little rational sense.
AppleCare coverage for a US$1,100 MacBook costs $250, or about 22% of
the cost of the computer.
Mac mini, $149* - 18-25% of retail
iMac/eMac, $169 - 8.5-17% of retail
MacBook/iBook, $249 - 17-22% of retail
Power Mac/Mac Pro, $249* - 10% of retail, 2.66 GHz model
MacBook Pro/PowerBook, $349* - 12.5-17.5%
* also covers one Apple monitor purchased at same time as
computer
IMHO, the MacBook and Mac mini have pretty much become
"disposable" computers in the sense that out-of-warranty major
repairs make less sense than with PowerBooks. Replacing a bad logic
board or broken display will most likely run you close to or even
more than what you can get a refurbished example of the same model
for - and with a fresh one-year warranty if you buy an Apple
Certified Reconditioned machine. Currently, Apple Certified
Refurbished 1.83 GHz Core Duo MacBooks are selling for just $850 with
a full year warranty, 90 days of phone tech support, and yes,
AppleCare eligibility.
However, if you'll sleep better knowing you have AppleCare
coverage, don't let me talk you out of it. The degree of risk one is
comfortable assuming is a personal matter, and statistical
probabilities notwithstanding, with any mass-produced product there
will always be a percentage of lemon units - so if you do decide like
me to roll the dice, be aware and prepared that once in a while they
turn up snake-eyes.
Mac of the Day: PowerBook 500 Series, introduced 1994.05.16. 'Blackbird' includes a 25 to 33 MHz 68040 along with smart batteries and grayscale or color displays.
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We believe in the long term value of Apple hardware. You should be able to use your Apple gear as long as it helps you remain productive and meets your needs, upgrading only as necessary. We want to help maximize the life of your Apple gear.
