Apple, your stuff is mostly nice. Fix your product warranty and maybe I'll open my wallet.
Apple, your stuff is mostly nice. Fix your product warranty and maybe I'll open my wallet.
When you're spending $3k on a computer, I don't see how $250 will really affect the bottom line...
payoff * Probability of payoff = EV
3000 * Probability of payoff = 250
3000 * P / 250 = 250/250
3000 / 250 * P = 1
12 * P = 1
∴ P = 1 / 12
You require 8.3% of the computers to fail in years 2 and 3, and for the failure to cause $3000 worth of 'damage' avoidance, and for it to be something covered under the warranty terms, for your gamble to make sense.
Judging by the fact they offer the warranty, I would imagine the fail rate to be somewhat lower than this, or for the failures to be vastly less expensive than that - else they'd be losing money.
It's a necessary part of the package.
So your protection is really only 6 months long.