03-12-2009, 03:42 PM
I understand why many people want to buy applecare, and having just bought a mini myself, at some point next year I will think about it. I always use AMEX so I always get the extra year, so that will likely decide it for me.
However, I want to address a commonly expressed misconception about applecare specifically and insurance generally: you always lose (on average). Much like gambling, you are betting against the house. I guarantee you that Apple prices AC to ensure that they make profits across the product line, including on laptops. Because consumers are much more cost sensitive on the price of the product upfront, prices and profits on these repair agreements are much higher.
The reason to buy any insurance product including AC is in the unlikely event of a loss you would be unable to repair or replace the product. Buying AC increases your overall computer costs for your lifetime by (guessing) 5-10% at least, even net of the reduced cost of repairs paid for by AC.
However, I want to address a commonly expressed misconception about applecare specifically and insurance generally: you always lose (on average). Much like gambling, you are betting against the house. I guarantee you that Apple prices AC to ensure that they make profits across the product line, including on laptops. Because consumers are much more cost sensitive on the price of the product upfront, prices and profits on these repair agreements are much higher.
The reason to buy any insurance product including AC is in the unlikely event of a loss you would be unable to repair or replace the product. Buying AC increases your overall computer costs for your lifetime by (guessing) 5-10% at least, even net of the reduced cost of repairs paid for by AC.