Warranty Week has published a survey of the US computer industry that looks at warranty costs. 330 companies were checked (although this did not include Dell, which is now private, and Microsoft which does not publish its warranty expenses). Overall, they paid out $6.9 billion in 2017 to settle claims. The site identified 90 computer peripherals manufacturers.
Big changes this year were from Apple which reduced its cost by $764 million and HP, which reduced its costs by $148 million. Some equipment makers saw increased claims, with Teradyne up by $15.4 milllion, Lam Research up by $35.8 million and Coherent by $15.4 million.
Computer Industry Warranties Claims Paid by U.S.-based Companies (in US$ millions, 2003-2017)
Looking at expense rates, the computer and data storage companies keep seeing a steady reduction in ratesm but semiconductor makers bottomed out around five or six years ago, and rates have been rising. However, over the long term, the rate has declined from around 4% in 2003 to around 2% now.
Peripheral makers have done better than this. with a steady result between 1.0% and 1.5% (after a spike a few years ago from the Microsoft XBox).
Peripheral Manufacturers – Average Warranty Claims & Accrual Rates – (as a % of product sales, 2003-2017)
For more details including accruals, check here.
