2 ms·
> that's just a cost they have to eat themselves Companies never eat any costs like this. Warranties, including the original one, are insurance policies by an
by rootusrootus 5y ago
> that's just a cost they have to eat themselves
Companies never eat any costs like this. Warranties, including the original one, are insurance policies by another name. You pay a premium for the insurance. For the original warranty, that premium is part of the price of the phone. I guarantee Apple knows how much the premium is. What does an iPhone sell for brand new in Norway? Half again as much as in the US?
- matsemann 5y agoOf course, but it makes the average repair cost upfront. If two phones sell for $1000 in the US, but one has a 10% failure rate and the other 0%, you can't know that buying one of them will on average suddenly cost you a lot more in the future. In Norway the one with a high failure rate would instead be priced around $1100. So manufacturers are incentivized to make more lasting products, which is also good for the environment.