Yes, I would I say it is. Especially judging from all these Dead Pixel threads among other things. I spent like $3000 on this computer, so the extra piece of mind is relieving should anything go wrong with my new Mac. Judging from what I hear, Apple's customer support seems to be pretty good.
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Is Applecare worth it?
- Thread starter Dunmail
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The rule on any form of insurance is if you have the cash to cover the loss, then in the long run, you are better off not buying insurance. Really insurance is intended for big things that we don't have the cash for, such as the house burning down or auto liability insurance. Extended warranties are nearly pure profit centers for companies. Look at AAPL's or BBY's quarterly report and see how much of the earnings are coming from these warranties...
One constant in these AppleCare debates is that any argument that begins and ends with a statement such as "yes, it's worth it," automatically trumps any cost-benefit argument. Worth has nothing at all to do with money, apparently.
They could (and should) change this. But everybody is cutting warranties to save money.
Also specifically in the computer arena IBM offered 3 year warranties a long time ago when most companies offered a year. The computer stores told sales people to not sell IBM, but the other brand then go for the 3 year extended warranty. They made more money selling the warranty than they made selling any brand of computer. So the computer industry standardized on the shorter warranty.
I think it's outrageous that a $1200 machine would need $1100 worth of repairs in two years. What is going on?
With automobile insurance, if your car requires repairs costing more than its current market value, the insurance company declares it "totaled" and writes you a check. So one wonders why Apple would sink more into repairing a Mac than it is currently worth. I don't suppose it has anything to do with giving AppleCare policyholders the feeling that they are getting value for their money.
It's nothing like a car. The expensive part of repairing a "totalled" car is the parts and labor.
In all likelihood, Apple has tons of these old parts available, so that isn't really costing them much, and the time for a technician to completely rebuild a laptop is often just a few hours.
The question is, would you have spent that $1100 if you didn't have warranty? If not, then it didn't save you $1100. If Apple wants to charge me $1100 to fix my two year old MacBook, the value of that repair would maybe be worth a few hundred to me, nothing more.
Look at it this way, you can buy 1-2 year old used MacBook for much less than $1100. To say you saved $1100 is ridiculous because if you didn't have Apple Care, you could've bought another MacBook with the same specs for cheaper.
BTW, how much do you think the "$1100" in repairs cost Apple? You have to look at long term also. In your whole life, how much have you spent in warranties for computers? In this case, maybe you lucked out. In the long run, you will always lose with warranties. Just in Vegas.
I really don't understand why people can't comprehend simple economics. Warranties are for suckers. No wonder so many people are in debt.
Parts plus labor -- that would be total cost of any repair. But the real question is, if Macs are are so inexpensive for Apple to repair (which is probably true), then why does Apple charge so much for the repairs?
One reason: to inflate the perceived value of AppleCare.
Value of used MacBooks
MB402LL/A - released 2/26/2008 - $640. 2.1ghz c2d.
http://cgi.ebay.com/Apple-Macintosh-Macbook-White-2-1GHz-Laptop_W0QQitemZ120394149508QQcmdZViewItemQQptZApple_Laptops?hash=item120394149508&_trksid=p3286.c0.m14&_trkparms=66%3A2%7C65%3A16%7C39%3A1%7C240%3A1318
Remember that you are only insuring 2nd and 3rd years. First year is already covered by basic warranty. You are not insuring a new computer. You are insuring a used $640 computer.
By the end of 2nd year...
MA701LL/A - released 11/8/2006 - $400. this is the high end 2ghz/2gb ram/with new 320gb hdd.
http://cgi.ebay.com/MacBook-Mid-2006-2GHz-2GB-RAM-NEW-320GB-HD_W0QQitemZ220381912615QQcmdZViewItemQQptZApple_Laptops?hash=item220381912615&_trksid=p3286.c0.m14&_trkparms=66%3A2%7C65%3A16%7C39%3A1%7C240%3A1318
Now, I couldn't even find a working 3 year old MacBook on eBay but let's say it has a theoretical value of $300.
What is the average value of your MacBook in those 2 years that Apple Care covers? $446.
How much would you insure $446? Personally even the $60 deals on eBay are a rip off.
MB402LL/A - released 2/26/2008 - $640. 2.1ghz c2d.
http://cgi.ebay.com/Apple-Macintosh-Macbook-White-2-1GHz-Laptop_W0QQitemZ120394149508QQcmdZViewItemQQptZApple_Laptops?hash=item120394149508&_trksid=p3286.c0.m14&_trkparms=66%3A2%7C65%3A16%7C39%3A1%7C240%3A1318
Remember that you are only insuring 2nd and 3rd years. First year is already covered by basic warranty. You are not insuring a new computer. You are insuring a used $640 computer.
By the end of 2nd year...
MA701LL/A - released 11/8/2006 - $400. this is the high end 2ghz/2gb ram/with new 320gb hdd.
http://cgi.ebay.com/MacBook-Mid-2006-2GHz-2GB-RAM-NEW-320GB-HD_W0QQitemZ220381912615QQcmdZViewItemQQptZApple_Laptops?hash=item220381912615&_trksid=p3286.c0.m14&_trkparms=66%3A2%7C65%3A16%7C39%3A1%7C240%3A1318
Now, I couldn't even find a working 3 year old MacBook on eBay but let's say it has a theoretical value of $300.
What is the average value of your MacBook in those 2 years that Apple Care covers? $446.
How much would you insure $446? Personally even the $60 deals on eBay are a rip off.
By the end of 2nd year...
MA701LL/A - released 11/8/2006 - $400. this is the high end 2ghz/2gb ram/with new 320gb hdd.
http://cgi.ebay.com/MacBook-Mid-2006-2GHz-2GB-RAM-NEW-320GB-HD_W0QQitemZ220381912615QQcmdZViewItemQQptZApple_Laptops?hash=item220381912615&_trksid=p3286.c0.m14&_trkparms=66%3A2%7C65%3A16%7C39%3A1%7C240%3A1318
That's a Core Duo MacBook (mid 2006), here is one of the late 2006 ones (over $500).
http://cgi.ebay.com/Macbook-Laptop-...4|66:2|65:12|39:1|240:1318|301:0|293:1|294:50
The point is still valid however.
I disagree with 2 posts above. If this were your basic $59 DVD player, additional coverage would for sure be a waste. But we're talking about highly complex technology with intricate interconnections among their components. If any one of them fails, nothing works. This is fast evolving technology that's updated frequently with untried new features and enhancements. No one knows the longevity and reliability of these new features.
We're all paying at least a kilobuck and likely more. 65 bucks for 2 more years of Mini coverage (as an example) is well worth avoiding the risk of shelling out big time for repairs.
We're all paying at least a kilobuck and likely more. 65 bucks for 2 more years of Mini coverage (as an example) is well worth avoiding the risk of shelling out big time for repairs.
My bad. Let's count that one as close to end of Apple Care. So you're insuring something $400-640.
You are missing the point. You are not insuring a kilobuck or more machine. When Apple Care kicks in, your computer has already depreciated by 50%. Most of its value is in the first year, when there is already warranty.
Or you can buy that same Mini on ebay for at least 50% off what you paid for it, and sell your broken one for parts that are still working. That's worst case scenario. Best case scenario is you save 65 bucks.
For AppleCare to be profitable, they must make more than they spend on repairs (and it is extremely profitable or else they wouldn't offer it. It is a business).
In the long run, you are guaranteed to lose money. Maybe you haven't hit the "long run" yet, but if you keep buying AppleCare your whole life, when you are 80 years old, I guarantee you will lose much more money than you save.
I think you're not seeing the situation as other people see it. Once you spend a kilobuck or more, it doesn't matter that it's depreciated somewhat - everything does. The point is you don't want that original investment to become worthless if an expensive part fails in the first 3 years. It's protecting a significant investment in complex technology that has a relatively high risk of failure.
Many people don't buy a new iMac or Mini every 1-2 years, and expect the one they invest in to last them quite a bit longer. They don't look at depreciation value because they have no intention of selling it in the near term. The just want to be assured the thing works for as long as possible. For 65 bucks, this assurance is well worth it.
Apple has great quality in their products. Certainly greater quality than most companies in the tech world. No question.
The chances of having hardware problems with your Mac hardware must be rather slim or small in scope, otherwise AppleCare would not be profitable for them. And, yes, the high costs of their repairs is also a useful marketing trick for AppleCare.
As with most warranty situations, it is a bit of a gamble, but in this case, with Apple hardware, it is one that is most likely in your favor.
The chances of having hardware problems with your Mac hardware must be rather slim or small in scope, otherwise AppleCare would not be profitable for them. And, yes, the high costs of their repairs is also a useful marketing trick for AppleCare.
As with most warranty situations, it is a bit of a gamble, but in this case, with Apple hardware, it is one that is most likely in your favor.
It will never be worthless. Many broken macs are sold "as is" for parts and they still command a fairly high price. And for just a bit more, you can buy a working model.
I'm not someone who just throws my mac away every year either. I try to get at least three years from a computer. If the mac I have now fails just after the 12 month mark, I'd be deeply upset too, but these things happen and it won't convince me to get Apple Care next time. I still know the odds of it failing in the 2nd or 3rd year are much much lower and financially, it just doesn't make sense. It's not wise to make purchases like this out of fear.
So far, I haven't needed a repair in the 2nd or 3rd year on any of my macs. I have gotten many repairs in the 1st year though. If a component is faulty, it will most likely fail in the 1st year. If you make it through the first year, chances are your components are fine and won't give you any problems.
If Apple offered accidental damage though, I will buy it. I have dropped/spilled water on my laptops a few times in the past. But it's probably not as profitable for them so they don't do it. That's another reason why AppleCare is not wise. If you accidentally break your mac, it gets stolen, damaged by an act of god, spill water on it, your AppleCare is worthless.
For Apple to make money, AppleCare must cost them less that their costs to repair computers, lose customers, etc. It does not have to cost them less than YOUR costs.
All this talk about buying used assumes that the used computer has no problems. That is a gamble as well.
There is no way to tell if it is worth it on a customer by customer basis. A business that buys many computers can crunch the numbers and decide to save the AppleCare costs and use that money to repair or replace any problem computers. Individuals have to decide if they are going to risk not being covered. If someone's 13 month old $1800 computer needs to be replaced, telling them that they will make up the cost of replacing the computer over their next 10 computer purchases (30 years) will not help very much.
Just wait until about 2 week from the end of your standard 1yr and get from Ebay. Yes, its worth it. As mentioned 1 repair would cost almost as much as a new system. It improves resale value as buyers have peace of mind that they are covered too.
I bought Applecare off Ebay for a Macbook ($120) and an iMac ($70) from same seller, cost me $190 total. Retail on the Macbook alone is $249.
I bought Applecare off Ebay for a Macbook ($120) and an iMac ($70) from same seller, cost me $190 total. Retail on the Macbook alone is $249.
That's similar to saying that you never know whether you'll hit the jackpot on a slot machine in Vegas. On one level that's true, but the other plain reality is that the odds are stacked against you coming out ahead. When you buy extended warranties you are betting against the house. The problem is, the house knows the odds, and you don't. Just like in Vegas, they make sure they win. Even so, lots of people play slots -- so what do I know?