Apple's hidden Cash Cow- *AppleCare*

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05elstonc05elstonc
Posted:
in General Discussion edited January 2014
I was browsing the Apple store and noticed that Apple care is in the top sellers on the store. A few days ago it was the number one seller. This is simply remarkable. I have not heard of any analyst discuss the impact of increased Apple Care sales on Apple's profits. Apple Care is $249 for the Macbook and $349 for the MacBook Pro. With all of the new switchers as well as a shift to notebooks, which are percieved to be more delicate it seems clear that AppleCare sales would increase. With Apple shipping around 800,000 notebooks last quarter and an expectation they will sell even more this quarter the impact of AppleCare will be unexpected. If only 1/8 of portables were sold with AppleCare assuming an even split between MacBook and MacBook Pro sales apple would bring in $30 million in revenue. The best thing however is the profit margin on Apple care is FANTASTIC. This will translate to a dramatic increase in profit. I am excited to see how it all pans out.

Comments

  • Reply 1 of 8
    hirohiro Posts: 2,663member
    Just because you finally realized it doesn't mean it has been hidden.



    <Yawn>
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  • Reply 2 of 8
    placeboplacebo Posts: 5,767member
    cool thread you made here
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  • Reply 3 of 8
    05elstonc05elstonc Posts: 38member
    Quote:
    Originally Posted by Placebo


    cool thread you made here



    Thanks.
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  • Reply 4 of 8
    zozo Posts: 3,117member
    "support" revenue is a MAJOR one for many companies



    Just look at Dell, Sun, MS, etc.. and especially Open Source companies (that sell open-source products) like Red Hat and others. Red Hat sells you support basically.
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  • Reply 5 of 8
    chuckerchucker Posts: 5,089member
    Quote:
    Originally Posted by ZO


    Just look at Dell, Sun, MS, etc.. and especially Open Source companies (that sell open-source products) like Red Hat and others. Red Hat sells you support basically.



    Precisely. This is no secret.
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  • Reply 6 of 8
    progmacprogmac Posts: 1,850member
    Dude, every computer company makes a killing with their warranties. Kind of like how insurance companies make a killing selling insurance, but the margins are a bit higher.
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  • Reply 7 of 8
    Marvinmarvin Posts: 15,585moderator
    The thing is though, if your display dies outside your warranty and you get charged £600, are you going to wish you had Applecare for £100-200?
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  • Reply 8 of 8
    lakingsfnlakingsfn Posts: 141member
    Apple Care for laptops seems like a smart buy, I plan on getting it for my 12" iBook before my year of standard care is up in April.
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