Apple’s Warranty Reserves Decline

AppleWarranty Week made a detailed analysis of Apple’s warranty and extended warranty programs and pointed out that Apple has become a leading global supplier of extended warranties. However, sales of protection plans has declined along with product sales volumes. In the year to September 2016, Apple made accruals of $3.58 billion for warranty claims, but spent $4.663 on repairs, so the balance in its warranty reserves declined.

Apple’s Extended Warranties: AppleCare US for iPhone & iPad vs. Mac & Other Products in Fiscal Years 2003 to 2016 (in Thousands of U.S. Dollars)