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TL;DR - Apple makes a huge profit on selling AppleCare. Recent estimates [0] shows that in 2021 Apple had revenue of $8.5B on Applecare while claims cost $2.6B
by yzydserd 4y ago
TL;DR - Apple makes a huge profit on selling AppleCare.
Recent estimates [0] shows that in 2021 Apple had revenue of $8.5B on Applecare while claims cost $2.6B. Also, the claim rate has been dropping YoY while revenue from AppleCare has been growing YoY.
Almost always, insurance schemes are profit generators (ie not sold at a loss). The reason to buy into a scheme like AppleCare is because you couldn’t recover from an immediate loss. e.g. The only non-mandated insurance I pay for is House Building insurance.
This is why I do not pay for AppleCare.
[0] https://www.warrantyweek.com/archive/ww20211104.html#:~:text=In%20fiscal%202020%2C%20AppleCare%20sales,iPhone%20era%20(since%202007) https://www.warrantyweek.com/archive/ww20211104.html#:~:text....