purchase applecare vs buy new iphone 3GS

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purchase applecare vs buy new iphone 3GS

Hi Folks,
My iphone 3G is about a year old and I am now presented with the option of buying applecare for $69. I checked my upgrade options and I can buy a new iphone 3G S for $199. So it seems to me that if something major or costly happens to my current iphone (lost, stolen, damaged, expensive repair...) I can just exercise the upgrade option. And if so, then applecare as insurance is costing $69 to protect an item that's replace for $199 -- not a very good insurance purchase. Of course, I would have to start a new two year contract, but that would not be a problem.
Anything wrong with this logic?
thanks,

iphone 3G imac 24", Mac OS X (10.5.7)

Posted on Jul 13, 2009 9:25 PM

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Answer 1

Jul 13, 2009 9:31 PM in response to gmansc

Nothing wrong with your logic, I never buy extended warentees or insurance for devices that are cheap to replace. In the long term, I am way ahead.

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Answer 2

gumsie

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Jul 13, 2009 9:52 PM in response to Craig Baron

I suspect those extended warranties are for things for which the purchase price is not subsidised. It's your choice of course.
The iPhone is not as cheap a device as the $199 dollars would suggest.

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Answer 3

Jul 13, 2009 10:00 PM in response to gumsie

The iPhone is not as cheap a device as the $199 dollars would suggest.

That's the price everywhere that I've checked. Are they more expensive where you are???

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Answer 4

gumsie

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Jul 13, 2009 10:06 PM in response to Karth Vahlnar

I mean in the way that if it broke, was out of warranty and you had no insurance it'd likely cost more than $200. That price is the subsidised price no?

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Answer 5

gmansc Author

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Jul 13, 2009 10:20 PM in response to gumsie

Yes, definitely a subsidized price. When Apple released the 3GS, they created a generous upgrade pathway for existing 3G owners. If my iphone was several months newer, I would not be able to upgrade for $199. The cost would be something more like $399 or $499 (can't recall exactly), and then the applecare might be a good policy. So the added plus with release of the 3GS and Apple/ATT upgrade policy is that one need not worry about insuring with applecare those iphones that are upgraded for a reasonable price.

One hitch is if one had to turn in the old iphone 3G, or its sim card, to upgrade. But I don't think this is the case. Anybody know for sure?

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Answer 6

danyn

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Jul 13, 2009 10:46 PM in response to gmansc

New iPhone 3GS will comes all set up and just connect to iTunes to complete...no need to return SIM card (if existing AT&T Customer). AppleCare does not seem so expensive after you need to use it 2 or 3 times!

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Answer 7

gumsie

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Jul 13, 2009 10:47 PM in response to gmansc

gmansc wrote:
Yes, definitely a subsidized price. The cost should be something more like $399 or $499 (can't recall exactly), and then the applecare might be a good policy.

If you need an iPhone as a back up then you would be keeping the old one, if not then perhaps eBay? You would probably get more than the $200 upgrade.

So the added plus with release of the 3GS and Apple/ATT upgrade policy is that one need not worry about insuring with applecare those iphones that are upgraded for a reasonable price.

....and you'd have a brand new warranty on the new unit.

One hitch is if one had to turn in the old iphone 3G, or its sim card, to upgrade. But I don't think this is the case. Anybody know for sure?

Not in England, so some of what I'm saying may be invalid.

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Answer 8

Jul 13, 2009 10:53 PM in response to gumsie

Apple offers an out of warranty or not covered under the warranty "repair" price for the iPhone in the U.S, which pays for an exchange at a discounted price, which costs $199 plus tax.

http://www.apple.com/support/iphone/service/faq/#warranty7

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Answer 9

gumsie

Level 4

2,185 points

Jul 13, 2009 11:02 PM in response to Allan Sampson

Then I stand corrected. I have also just seen that in England £146.13 is the magic number.

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