Business & Finance
News
11/16/2006
09:31 AM
Connect Directly
RSS
E-Mail
50%
50%

Extended Warranties Unwarranted, Except For Apple's

For most products, extended warranties are a "notoriously bad deal" because products seldom break within the three-year window specified by most offers, Consumer Reports says.

Consumer Reports, the independent product review and rating publication, has urged shoppers to turn a deaf ear to salespeople shilling extended warranties. In almost every case, such warranties are a waste of money.

One exception: Apple Computer's warranty extension for its Mac computers.

The publication claimed that its data shows extended warranties are a "notoriously bad deal" because products seldom break within the three-year window specified by most offers. "Based on our extensive testing and research, Consumer Reports has long advised against extended warranties," said Kim Kleman, deputy editorial director, in a statement. "A better idea is to buy a reliable brand."

One of the two exceptions the magazine called out was Apple's AppleCare Protection Program, which the computer maker sells as an add-on. The extended warranty for a 20-inch iMac, for instance, adds $169 to the machine's $1,499 base price.

"[Macs] come with only 90 days of [phone] tech support, and the additional warranty extends that," said Consumer Reports.

The other product where an extended warranty is warranted: rear-projection microdisplay TV sets, which the publication pegged as both expensive to repair and three times more likely than other TV types to need repairs.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.