SAN FRANCISCO – July 7, 2008 - SquareTrade announced the details of its warranty coverage options for the new iPhone 3G today.
SquareTrade's standard warranty coverage on the device is will cost approximately 30% less than AppleCare's expected pricing and will provide an additional full year of coverage. With a five-day service guarantee, a device failure will be resolved quickly and oftentimes with cash for replacement costs. "If your iPhone fails, we'll fix it quickly or give you cash to replace it. It's that simple," says SquareTrade CEO Steve Abernethy.
SquareTrade is still the only provider that has confirmed it will offer optional Accidental Damage from Handling (ADH) coverage on the iPhone. Neither Apple nor AT&T is expected to offer any type of coverage for devices accidentally damaged by the user. And because the replacement costs for the devices will be significantly higher than the AT&T subsidized prices of $199 and $299, the ADH coverage option is expected to be in demand among customers seeking peace of mind.
"The iPhone will initially cost less with the new release, but only with a brand new 2-year wireless service agreement. If you accidentally drop or damage your phone and don't have coverage, you're still going to have to pay around $400 to replace it," notes Abernethy.
More customers opt for ADH protection on the iPhone than on any other electronic device that SquareTrade backs. "That's probably because they are drawn to its clean design and beauty -- but it's also pretty fragile-looking," says Abernethy.
Abernethy and his team at SquareTrade suspect that the new pricing on the 3G will cause more price-sensitive buyers to look to the iPhone - and these people will seek warranty coverage that also offers a better value. The cost of a SquareTrade warranty for iPhone amounts to about 12% of the item's replacement cost – which is $399 and $499, depending on model -- and includes three years of hassle-free coverage, an online warranty management tool, no deductible, and the SquareTrade five-day service guarantee. An additional fee and deductible applies for Accidental Damage from Handling coverage.
Founded in 1999, SquareTrade makes warranties that make sense, offering fair prices, a no-pressure way to buy online, and no-hassle 5-day service. Buy your item anywhere (online or in a store) then get a better warranty directly from www.squaretrade.com or call 877-WARRANTY. SquareTrade offers consumers an alternative to big retailers' or manufacturers' overpriced and under-serviced warranties and costs 40% less on average than big retailers. SquareTrade is the only service consistently rated 5 of 5 by consumers. SquareTrade is the largest independent warranty provider in the world for consumer electronics and appliances. Privately held, SquareTrade is headquartered in San Francisco. For more information, go to www.squaretrade.com.