When I returned home from my summer vacation, an unexpected surprise was waiting for me in my snail box. Among the bills and birthday cards was a tear-open envelope from my favorite computer company, containing “Important information regarding the warranty on your Apple product.” The opening page read:
Dear Mr. John Nemerovski:
On October 27, 1995, the one-year limited warranty on your Performa will
expire. Repair bills will be your responsibility, unless you order AppleCare
today.
I vaguely remembered a salesman mentioning that I would have the opportunity to extend my new owner’s warranty after the first year, and I continued to read with interest.
The next four pages provided details on ordering AppleCare, and explained what is covered and how to obtain repair service. So far so good. Then came several pages of model numbers for computers, monitors, and peripherals. I found my model: Performa 630 series and display. When I located the price for one year of additional service my teeth nearly dropped onto my keyboard. Yikes! The cost is $144 (US) for carry-in service or $180 for on-site repair. The carry-in amount alone represents more than 10% of the present cost of a new P636CD! Ouch. I was not prepared for this much ice water thrown in my face.
I called AppleCare and inquired if the prices I observed were correct, which was the case. I asked if only one year was covered, which also was the case. I inquired how much the fee would be in subsequent years, which was not known at this time. I hung up, making sure not to express my shock in angry terms to the telephone agent.
I called my friend Stuart, who has owned a number of Macs. “When your new Power Mac warranty expired did you buy the expensive AppleCare?” I asked. “Well...,” he began:
It’s funny you should ask, because I just bought a new computer…my third.
When I upgraded my Performa 600 to a Power Mac 7100 last year, some of the
components were transferred. Recently I was having trouble starting the computer
from the “power on” key, and I actually had to use the CPU restart procedure. This
problem was intermittent, and I was really getting upset. I decided to buy a new
Power Performa 6220CD, transfer most of my applications and data from the
7100, get the 7100 fixed and give it to my wife. Just now I’m in the process of
loading a bunch of files into the new 6220, and wishing I had purchased the
AppleCare warranty. But knowing myself, I probably wouldn’t have bought the
extended year anyway, since nothing had gone wrong with the first Power Mac
during its initial year of Apple coverage. I probably won’t buy one for this new
Mac, either, because I don’t ever buy extended warranties for depreciating
products.
I was more confused than before I called Stuart. He should have purchased AppleCare, but he wouldn’t have done it. This advice was not sufficient to help me decide.
I opened my current copy of AMUG NEWS, our local users group magazine. One by one I called the “AMUG Helpers” who volunteer their expertise over the phone. I was able to reach six of the experts, who offered the following advice:
Joe: You probably don’t need AppleCare. Buy a good surge protector or backup
system instead. My data is the most valuable part of my computer.
Ralph: AppleCare is fairly priced. It’s a good deal relative to your risk. Your Mac
should last you for five years.
Paul: Skip it.
Dick: Get it.
Charlie: Don’t worry. I have a bunch of desktop Macs and they never break.
Leigh: Definitely buy AppleCare. Your Mac has an IDE drive, which is not standard,
and you need all the help you can get.
Who was I to believe, given these mixed recommendations? I called Brian, the AMUG repair technician, for advice.“I’ve never seen a Performa 636, so they must be pretty good.” I was somewhat reassured.
I wrote to my epal, Paul, in Pittsburgh. He is quite outspoken on all aspects of Mac-lore, and his comments always hit home for me. He wrote back:
I can't see the future for you. If you are paranoid about such things spend the
money if you can afford it. This is Apple service and not a 3rd party, right? How
long is the warranty for? You already have a 1 year warranty on a computer that
used is probably worth about $750. Does the warranty extend to your
monitor/modem too or just the CPU?
(In fact, AppleCare would cover the CPU, monitor, keyboard, and mouse.)
It’s a personal choice. I don't know if the warranty covers software problems or
just hardware problems. Our local CompUSA charges for problems that are
software related when the consumer brings a computer in for what they thought
was a hardware problem. I don't think that even Apple is going to provide "at home"
hand holding warranty service for minor glitches.
(Hardware only would be repaired or replaced by Apple, as needed.)
For the most part if something doesn't go wrong during the regular warranty
period then nothing probably will. I don't buy extended warranties myself. I'd
rather get a 28.8 modem or more memory with the money. This is just my
personal opinion.
Bottom Line: I can't tell you what to do, or what not to do with your money. I'm
afraid that you will have to make this decision on your own. Insurance is like a bet.
They bet that nothing will go wrong with your computer, and you bet $180 that
something will.
Eric Hausemann, compiler of Tech Support Tales and a technical wizard, told me that:
It's a tough call. If you're handy with minor fixes such as corrupted files, doing
clean installs, extension conflicts, etc., you may be tossing your money out the
window. Although if something serious should happen, you will most likely pay
even more...and in some cases even if you just pay for parts and install them
yourself.
At my last job, I worked on a Quadra 700. One day the machine's hard drive stopped
spinning and the power supply got toasted at the same time. A new hard drive isn't
too terribly expensive, but the power supply cost $450. Hardly seemed worth
saving the machine since my department was upgrading to Power Macs in 6
months.
On the other hand, at home I have a Quadra 800 that I bought in March of last year
and a Performa 450 that's 3 years old. Both of these machines are on approx-
imately 14 hours a day. I've never had one hardware problem with either of them.
So I guess I don't have a solid answer for you. If you take your chances, you could
be fine...if you pay for AppleCare and you need to take advantage of it, you'll
probably save yourself some financial headaches.
Next I posted an appeal for experienced help to the Usenet News Group <comp.sys.mac.misc>, whose contributors are generally quite knowledgeable. I received the following two replies:
Steve wrote:
My recommendation is that you not bother. Computers just don't break down that
much and typically if they do it’s probably around the time when you want to
upgrade anyway.
And Mike wrote:
I have carried AppleCare extended warranties on a variety of new and old Apple
equipment over the years. In fact, for 13 years as an Apple salesman, I often sold
such contracts. While I no longer sell Apples, I do still keep some contracts on my
equipment.
Think of these contracts as you would any insurance. They are a way to avoid
surprises. I never pushed such contracts hard with customers, but always had
some people that would buy them—even when the contract prices were high. Recent
competition for service has brought such prices way down and has provided
service options. My laser printer contract dropped from over $300 a year to $72
and that now includes on-site service.
Check into the prices and options available in your locality. You may want to cover
only pieces of your system, like the printer and monitor and take your chance on
the CPU. Do note that some coverage may be better than it looks at first. For
example the CPU coverage might cover your keyboard and mouse as well as the CPU
motherboard, power supply and its stock memory.
Current computers are reliable and may work for years without failure. The
choice is yours. If the fee seems to offer reasonably priced coverage, then do buy
the warranty. Also, check to see if an on-site option might be just a few dollars
more.
I posted a request to the AOL Mac Hardware (MHW) Performa Message Board, and received this reply from AFC Lisa, the MHW Forum Consultant:
Sorry to not be a warranty expert. I don't own a 630, but I've never had any
warranty problems with my four Macs. However, I have known people with Macs,
who have had hardware problems occur after owning their Mac for over a year (up
to and including motherboard failure).
Some things you may want to consider are
1) Has your 630 been problematic in the past?
- i.e. have you had to replace any hard drive, parts or motherboard?
2) Do you plan to upgrade or sell your 630 in the near future?
- granted the 630s are great Macs, if you plan to give away (to a friend or
relative) or sell your 630 within the next 3 months, you shouldn't have to
worry about extending your warranty.
3) Does your Mac live in hardware problem-prone territory?
- this can be a very humid or cold climate, pest (ant or other pests visiting
your computer), power lines or cables nearby the computer area (or strong
magnetic fields), or pets (cats, dogs, etc., which may shed hair).
If your Mac is exposed to any large amount of interaction with your environment,
you may want to consider extending your Mac's warranty if you feel the
environment may have a problematic impact on the Mac hardware.
In my case (1) I have not had any hardware problems, (2) I plan to keep this Mac as close to forever as is realistic, (3) Arizona is hot but my office is not, and we don’t have pets or pests, and (4) power surges are a way of life in Phoenix. By the way (BTW), I unplug everything, including the phone line, during a lightning storm and when I go away on vacation.
My friend Jack happened to drop over, so of course I asked his opinion. He answered without any hesitation, “If it moves I buy the extended warranty. If it sits on a desk I hope for the best. I didn’t have an extra warranty for my camera, and it cost me a bundle to get it repaired.”
Throughout this agonizing investigation I had one constant thought: If the cost wasn’t so high I’d gladly buy the AppleCare warranty. For $50-$70 per year I wouldn’t mind, but for $144 $180 I was very reluctant.
By coincidence, my sister-in-law had tossed a catalog from Elek-Tek, an Illinois computer retailer, into my suitcase before we left her house in Chicago. I was thumbing through it, attempting to regain my composure, when I noticed their “Top Security Protection Plan.” I called the company and learned that I could purchase two years of extended coverage from Elek Tek for $189/carry-in or $229/on-site. Elec-Tek contracts with a company called I.D.S., who issues the warranty and provides the names of authorized local service centers. The amount was reasonable, but by this time I was beginning to be swayed by the “don’t worry, buy a surge protector” line of thought, so I purchased a surge protector with an equipment replacement warranty.
It’s funny, but during this entire process I never actually spoke with someone who had received service under AppleCare. Several of my sources emphasized that it’s both a service plan and a source of profit, and since most Macs are trouble-free, Apple generates a ton of revenue from the plan.
Here’s how I made my decision. I added up the cost of replacing my Apple hardware, piece by piece, since it is probable that not everything would croak simultaneously during the next two years. Then I considered that I would definitely upgrade, rather than merely replace items, if the decision was mine. Finally I factored in both the AppleCare and Elek-tek warranty prices, and the reliability of the majority of Macs (including mine). At this moment a “You have mail!” message arrived over the Internet. My plain-speaking friend Paul sent a follow up email message from Pittsburgh. It was as if my unconscious had been brought to life on my monitor:
I’m sure you have gone through a lot of hair pulling, gut wrenching, opinion
seeking, and sleepless nights to make a hopefully correct decision, right? Are you
comfortable with your decision? Can you afford a repair?
(I can afford a repair, but I certainly hope I never need one!)
I predict that you won't get but another 2-3 years out of your Mac if you stretch it
out. I look for computers to become much less expensive very quickly once the
sales peak has been reached. You will be able to buy a Macintosh "loaded" by today's
standards for around $1000. Just look at what has already happened. A
7200/90/CD/8/500HD available for $1900 is faster and very similar in
capability to an original 8100/80 that sold in a stripped 8/250 configuration for
$4000 just 19 months ago.
Your Performa’s 68040 processor is already three generations old and not of the
new RISC architecture. The PowerPC 601 is already 19 months old and the
PowerPC 604 has just been released. And within the next 18 months, a newer
processor is likely to debut. We must learn to cope with what we have if that is
possible. We are both in trouble because the newer software will become
exclusive to the Power Macintosh in a couple of years. The older computers won't
be able to benefit from the improvements in the latest and greatest software.
Therefore, on Friday, October 27, when my original one year limited warranty expired, I went outside into the gorgeous Arizona late-summer and took a deep breath of fresh air. I decided to pass on the extended warranty. I’m out on my own now , and I recommend you consider the options carefully before you decide for yourself.
 
John Nemerovski's monthly column explores the trends, psychology, and emerging culture of the ' digital renaissance' and how we are all adapting to this "Brave New World". John looks forward to feedback at johnemer@aztec.asu.edu.
