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Old 06-10-2008, 08:29 PM   #23
The Alternative
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Posts: 74
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Join Date: Mar 2007
Location: Southeastern Wisconsin
Device: Sony Reader PRS-500 (x's 2), PRS-505, PRS-600, iPhone, iPad
Quote:
Originally Posted by JSWolf View Post
I've known of cases where it's more then paid off to have the warranty. My 505 has never had a problem and I do carry it around with me most times when I leave home. But then, I've also heard of cases where it didn't take much to damage the screen. Sometimes the screen can be more fragile then others it seems. And I am talking about ALL eink devices when I mention damage and the screen.
Of course, the manufacturers' original warranty is a service that you pay for when you first purchase an item. EXTENDED warranties, as outlined by Consumer Reports and many other consumer agencies, is BAD. Here is the reasoning:

From SmartMoney.com
"Since extended warranties are claimed so rarely, the profit margins on them run as high as 40% to 80%, says Marlys Harris, finance editor for Consumer Reports. That can pad a company's bottom line nicely. During 2004, in fact, nearly 100% of Circuit City Stores' (CC: 4.38, -0.02, -0.45%) and 50% of Best Buy's (BBY: 45.07, +0.89, +2.01%) operating income came from extended warranties, say analysts. Is it any wonder that the big box retailers aggressively push these contracts?"

http://www.smartmoney.com/consumer/i...story=20050707
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