Andrew Clark1
Well-known member
Apple sells Apple Care Plus to its customers who want it. Why would Apple do that? I highly doubt it’s out of the kindness of its heart. Since Apple is a business, it’s safe to say that it saw an opportunity to make more money.
Think about it. Let’s say that one million people spent $129 on Apple Care Plus. That’s equates to 129 million dollars. A majority of the people in this example will more than likely buy a protective case for their device and others will also purchase a screen protector. Even if 10% of those people damaged their device and got it replaced with Apple Care Plus, they still have to fork over $29 for screen repair and $99 for a replacement device.
100,000 people (10% of a million) would pay Apple an additional 2.9 million dollars combined if they all needed screen repairs. Those same people would pay Apple an additional 9.9 million dollars combined if they all needed a replacement device. That’s additional money paid to Apple on top of the 129 million that’s already been paid.
The iPhone X allegedly cost $370 to build. If the 100,000 people got replacement iPhone X devices, that equates to 37 million dollars. That’s far less than the $129+ million that Apple has made selling Apple Care Plus.
Here’s the kicker. I will argue that 80% of the aforementioned million people are on an installment plan either with Apple or their wireless carrier. In other words, they don’t even own the phone outright yet.
You said that “Someone has to pay for the people who deliberately drop their phones and get them replaced under Apple Care Plus...”
It looks to me that the debt has long been paid.
Well said. Well said