The AppleCare Hustle
Ensuring you’re devices are covered under AppleCare can become quite an expense. Is it worth it?
Do you know if you are paying more for AppleCare than you are for the repairs you claim through Apple's extended warranty program?
I wanted to find out the answer to this question after listening to an episode of The AppleInsider Podcast where the two hosts spoke about whether the merits of paying for repairs out-of-pocket is less than the cost of AppleCare purchases.
Initially, I agreed with Stephen, the cohost whose opinion, and this isn't a direct quote, was: "AppleCare All the Things!" This ran opposite to Wes' argument; he maintained that he saves money not purchasing AppleCare since the cost of any out-of-pocket repairs incurred is less across time than if he has purchased AppleCare.
Initially, I was incredulous at Wes' position! But the more I thought about it, I realized I had no true sense about my AppleCare spending. I buy a lot of AppleCare - probably 80-90% of my products get coverage - but I never sat back and calculated 1) the cost of all these extended warranties and 2) if I was coming out on top, breaking even, or hemorrhaging cash.
Insurance is a Funny Thing
Insurance has to be one of the most interesting of humanity's creations. The basic premise behind insurance is that at the onset of a transaction, two parties meet & make a wager where the insurer promises to cover the cost of any accidents that may occur over a specific period if the insured is willing to pay a specified amount upfront. The insurer is running on the business model that more people buy insurance than claim insurance, and therefore as a whole, the industry remains profitable. On the other hand, the insured is gambling on the fact that they are just blunderous enough that the cost of any future repair will offset the upfront cost of the insurance. The insurer relies on market data and analytics to set the price of their insurance, ensuring their model remains profitable. In contrast, the insured often relies on a recollection of their history and a ton of emotional reasoning to decide if they will be the statistical oddity to make "a profit" of having bought insurance.
The Calculus
The first thing I did was tally up the cost of ALL the AppleCare I've purchased since Fall 2018. The number was arresting: $2,097. I spent as much on AppleCare as I would on an iMac, MacBook Pro, or high-end iPad Pro.
After the shock wore off, I began to feel like a perfect ass. I consider myself very cautious with the handling and upkeep of my Apple products, so why was I spending a fortune on warranties? I have many products right now that have zero AppleCare claims against them: AirPods Max, my M1 MacBook Air, the family iMac, etc. At this point, I began to rethink everything I believed about the value of AppleCare.
After listing the devices I'd purchased AppleCare for, I began to chronicle my service history and what the out-of-pocket repair cost would be. Crunching these numbers, the calculus began to shift.
Import caveats: One of the perks of AppleCare is its generous policy around accidental damage. There are repairs that I have sought primarily because I had a warranty that, without AppleCare, I would've learned to live with because they were largely cosmetic. For example, I recently had the $399 Magic Keyboard replaced for $49 under my iPad Air's AppleCare, a repair/replacement I otherwise would've been hesitant to pay out-of-pocket for since it didn't affect the keyboards functionality. For my calculations, I also did not include any repairs performed under any included warranty (such as the extended warranty on the AirPods Pros or the MacBook Pros butterfly keyboard).
AppleCare & CLAIMS History
Beats Solo Pro ($39 for AppleCare)
2020: Torn ear cup fabric ($379 repair replaced to $0)
2019: Static in the left earphone ($379 to replace to $0, but within Apple’s 1-year limited warranty, no AppleCare required)
AirPods Pro ($39 for AppleCare)
2020: Left bud crackling ($115 repair, but covered under Apple's extended warranty program, no AppleCare required)
2020: Right bud crackling ($115 repair, but covered under Apple's extended warranty program, no AppleCare required)
M1 MacBook Air ($229 for AppleCare)
No claims
AirPods Max ($59 for AppleCare)
No claims
iMac ($199 for AppleCare)
No claims
2018 iPad Pro 11" ($139 for AppleCare)
2019: Scratch across the screen ($698 repair down to $49 under AppleCare)
2019: Scratch along the casing of the iPad caused by Apple Pencil ($649 repair down to $0 under AppleCare)
iPad Air 4 ($79 for AppleCare)
2021: Dropped Magic Keyboard ($399 repair down to $49 under AppleCare)
iPhone 11 Pro ($249 for AppleCare)
2021: Dropped, broken screen (365$ repair down to $0 under AppleCare)
iPhone 12 Pro ($249 for AppleCare)
No claims
Apple Watch Series 4 ($139 for AppleCare)
2019: Series 4 Sapphire Screen scratch ($519 to $99 under AppleCare)
2019: Series 4 Speaker crackle ($519 to $0 under AppleCare)
Apple Watch Series 5 ($199 for AppleCare)
No claims
Apple Watch Series 6 ($199 for AppleCare)
No claims
MacBook Pro ($279 for AppleCare)
2020: Butterfly key stuck ($558 repair to $0, but covered under Apple's extended warranty program, no AppleCare required)
Total AppleCare cost: $2,097
Total repair cost for all claims: $3,380 (+1,283 more than AppleCare)
Repair cost for only “essential” claims: $1,533 (-$564 less than AppleCare)
Conclusions
The findings point led me to draw a muddled conclusion about the benefit of AppleCare. To start, I didn't expect all the AppleCare claims I made over the past two years ($3,380) to surpass the total spent on the warranties themselves ($2,097). Looking at it this way, I came out ahead, saving nearly $1,300 had I paid for ALL the repairs myself.
Two examples of so-called “essential” claims: a dropped iPhone 11 Pro with a broken & non-responsive OLED display & an iPad with Retina display with pretty much everything broken.
But when I removed the 'cosmetic' repair claims, those that affected the look but not the functionality of a product, the numbers flipped. I have only claimed $1,533 worth of essential repairs, meaning that had I not purchased AppleCare and paid for the repairs myself, I would have saved $564.
An example of a cosmetic repair. In this picture, my Apple Watch Series 4 has a scratch across a quarter of the Sapphire display.
In saying all that, I still have more than a year remaining in the AppleCare coverage for many of my devices, including my iPhone 12 Pro, iPad Air, Series 6, iMac, & AirPods Max. Lots of life can happen over the next 12-18 months, and these numbers will continue to shift if I make any more claims.
A second caveat to acknowledge is the size of my sample. I would need to make a broader inquiry, going further back in time, to see how representative this period is to others and what the total value of AppleCare over my entire Apple purchasing history has been.
In Sum
So, is AppleCare worth it? Well, it depends. In the immortal words of Ted Lasso: "If God wanted games to end in a tie, she wouldn't have invented numbers." In my case, it a win because I prefer to keep my products looking their best and value the peace of mind AppleCare affords me in seeking a repair if I get a tear or undesirable scratch on my devices. But if that stuff doesn't bother you, and if you're a generally careful/lucky person, then AppleCare may not mean that much to you. And in that case, you would be right in arguing that you stand to save a lot by opting not to purchase AppleCare or by being more selective in what products you buy AppleCare for.
