The latest Strand Consulting report points out a guarantee risk for European operators of carrying Apple’s insanely popular device - European law demands a two year product guarantee be provided to CE consumers, while Apple only offers a single year’s free warranty.
“Within the EU there are general rules governing products purchased by end users. Consumer electronics like mobile phones are covered by a two-year guarantee. In Norway a court ruling required that retailers in certain cases give a five-year guarantee, resulting in the customer being able to have their handset repaired at no extra charge for up to 5 years,” the report notes.
Strand Consulting also informs most manufacturers will usually cover the guarantee obligations on their own products, but Apple doesn’t.
“Apple only gives their customers a one-year guarantee, resulting in the retailers having to cover any additional repair costs during the second year of the phone's life - costs that can be potentially very expensive if a certain model turns out to contain many defects.”
While the iPhone hasn’t been shown to contain many defects at this time, there is a risk to operators offering the device, not least to ensure carriers put sufficient cash aside to deal with any potential repair requests under European guarantee.
Additional potential challenges include:
- When operators calculate their iPhone business cases, it is important that they include possible repair costs during the phone's second year - costs that they do not have on other handsets.
- Operators that can only bind postpaid customers on 12 month contracts should consider how to handle those customers that choose to switch to another operator or MVNO after the contract expires.
- Operators should consider the consequences of a series of hardware or software malfunctions that could result in a great number of phones needing servicing 12 to 24 months after they have been sold.
- Operators ought to initiate a dialogue with Apple to ensure they receive the same guarantees from their manufacturer that they themselves are obligated to give their customers. In other words that Apple covers their guarantee obligations for the full guarantee period.
- If Apple is not interested in helping operators cover their guarantee obligations, operators should examine the possibility of taking out insurance against possible future repair costs to thereby eliminate any larger repair risks.
“If you are an operator and have sold hundreds of thousands of Iphones, you only need a simple calculator to work out what it will cost if 5 to 10 % of those Iphones become faulty during their second year of use and what it then would cost an individual operator if an average repair including logistics costs between 35 to 70 euro,” the researchers warn.
Delicious
Digg
StumbleUpon
Reddit
Facebook
Google
Yahoo
Comments
2 - 5 years have been norm for years (decades)
2 years have been the norm for decades in many countries in Europe. Now EU has made it the same. Among others, Norway has 5 years for mobile phones. This includes dropping it on the floor a 100 times over the 5 years.
This may be news for some, but not in Northern Europe.
Cheers!
In fact i wonder how this is
In fact i wonder how this is in Germany, and also with the iPod touch. I was thinking about getting AppleCare for my iPod touch. But know that i read i actually might have 2 years of warranty by law...
I'm confused ;)
Does anyone know how this is handled?
I work for an APR (Apple
I work for an APR (Apple Premium Reseller Store in Belgium. I'm responsible there for service (iPods, iPhones, ...). I can tell you this:
- Mobistar bought the right from Apple to sell iPhones, including 2 years of warranty. We, as APR, also buy our devices at Mobistar. We do get without problem, a 2nd year warranty on both consumer and corporate devices (normally Belgium only gives 1 year to businesses, and 2 year consumer warranty). We have to send in the defective devices to a repair center, they check for damage. A high percentage gets labled "liquid damage", resulting in no warranty, the device can be swapped at a fixed (rather expensive) price (more than 50% of the initial value of the phone).
- Consumers get, when asking for it, a second year consumer warranty on iPods. We have to provide Apple with a Proof Of Purchase, not showing a VAT number (Indicating that it's personal use).
-AppleCare does not cover accidental damage, not for the iPods, and I assume not for the iPhones (MC265).
In fact i wonder how this is
In fact i wonder how this is in Germany, and also with the iPod touch. I was thinking about getting AppleCare for my iPod touch. But know that i read i actually might have 2 years of warranty by law...
I'm confused ;)
Does anyone know how this is handled?
It's not warranty, it's defects liability
In Germany the first 6 months after purchase the dealer has to proof that the problem that occurs isn't a problem that has its origin in the production of the device when it fails. After that time the customer has to do that proof and this is nearly always impossible. Usually you will need an expert's report and that will cost you at least several hundred bucks.
Warranty does the producer on a voluntary basis on his own terms (or when you purchase Apple Care you actually buy a support contract). If you do not wanna take the risk that the device fails: get Apple Care
Full details
It's not a no-quibble guarantee and doesn't apply to accidental damage, so AppleCare would still be useful although some shops, such as John Lewis, offer a 2-year guarantee anyway.
Full info here:
http://ec.europa.eu/consumers/cons_int/safe_shop/guarantees/index_en.htm
and a summary of how works in practice in the UK here:
http://www.thisismoney.co.uk/bargains-and-rip-offs/tips-and-guides/article.html?in_article_id=487339&in_page_id=53954&in_advicepage_id=131
Free market
Just another case of government, the EU in this case, not letting the free market take its course. How dare they force companies to give the consumer something! :)
But I do look at the bright side, my Apple ][ had a 90 day warrenty.
In Germany you have several
In Germany you have several rights.
1. in case of malfunction ;as you buy a consumer's device; you have to direct your demand directly to the seller first
2. within the first 6 month after purchase the seller may opt for repair or refund you money or change the device; they will assume the malfunction was already inherent while buying the device; if the seller wan't follow your demand for correct functioning he has to prove the malfunction was not included at the time you ware buying
3. after the first 6 month you own your device you have do as in 1., but now the costumer have to prove the malfunction was inherant while buying the device
in Germany guaranty (guaranty as you mean in the U.S.) is voluntary; a seller oder vendor may opt for promissing the costumer a guaranty or not
In the States...
You should read your warranty. In short, the warranty doesn't trump the law. Where the law conflicts with the warranty, the law wins. And that applies in the states, too.
The warranty is the manufacturers promise to you, but it cannot take away rights. In many US states there is a "fitness of merchantability" claues in consumer protection laws - which means that the item sold must be reasonably fit to perform despite manufacturers (or retailers) arbitrary warranty limitations.
Apple knows this, as do all other retailers and manufacturers. Some will work with you; others will say "no" and only abide by the law after you take them to court. I've never had a problem with Apple, but I have had a lot of problems with a particular home improvement store that refused to stand behind their products - I was out $600, and it took a judge to stop them from ripping me off.
This is a problem of
This is a problem of translation:
In Germany there are 2 different kinds of warranty, one is called "Garantie" and one is called "Gewährleistung", but there is only one translation into english: warranty.
"Garantie" is a completely voluntary benefit of a manufacturer.
"Gewährleistung" is nonvoluntary and regulated by law, but is valid only between the vendor and the buyer of a product, while the manufacturer of the product has nothing to do with it.
The "Gewährleistung" is not as valuable as a "Garantie", because it is only about the condition of the product at the time of the purchase.
Within the first 6 months after the purchase, it is assumed by law, that a defect was already present at the time of purchase. The vendor has to prove the opposite, to reject a repair/replacement.
But 6 months after the purchase, the burden of proof is handed over to the buyer: now it is assumed by law, that a defect has appeared after the purchase and this time the buyer has to prove the opposite, if he wants to receive a repair/replacement without costs.
So, in fact the "Gewährleistung" is worth nothing after 6 months, because a buyer typically can't prove that a defect was already present at the purchase.
A second point is bankruptcy. Is the vendor bankrupt, you have no one to go to with your "Gewährleistung", while the manufacturer is still alive and in case of Apple doing well.
Unfortunately, this is a part of german (european) law, that nearly no german customer understands (and makes it really hard to sell a product like Apple Care).
Under EU law the retailers
Under EU law the retailers have to process warranty claims in the second year after purchase BUT, and it's a big but, the customer has to prove that there is a defect attributable to a defect in the manufacturing process.
This makes it very difficult for the end user to achieve a repair under warranty as he/she would have to seek out (and pay for) an independent report that effectively proved the case.
Of course, some EU countries may offer extra rights to consumers that make this point mute.
iPhone insurance
A large number of iPhone insurance providers are available in the market having several features in the policy they provide. In fact some are specifically designed for same, one can be assured that all the hidden risks and damages too are taken care of by the insurance. Basically a insurance company features are the same.
Post new comment