30.3% of iPad 2’s will be accidentally damaged

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A report just released by Squaretrade projects that 30.3% of iPad 2 owners will experience a problem, most likely from consumer-caused accident, within the first three years of ownership.

Some of the more unusual iPad accidents reported to SquareTrade included the iPad being vomited on, being thrown out of a moving car by a three year old, and being urinated on by a cat.
Based on the survey of Squaretrade customers 10.1% of iPad 2 warranty customers reporting a problem in the first year, it is 2.7 times more likely for iPad 2 to experience a problem than the first generation iPad 1. Whether this is due to the slimmer design leading to more glass breakage, or whether people are becoming more accustomed to their iPads and consequently more careless isn’t known. However 8% of warranty claims were from damage caused by children, suggesting that parents are more than happy to allow their kids to play with £400 tech toys

The good news is that while accidental damage claims are up, reports of non-accidental malfunctions have decreased. In the first 12 months, only 0.3% of iPad 2 compared to 0.9% of iPad 1 customers reported hardware failures not caused by an accident.

If you’re thinking of buying an iPad on eBay then I’d seriously suggest you buy a warranty with it. If you’re upgrading to the new iPad when it’s released I’d definitely buy a warranty! and you should see the cost on all qualifying eBay listings.

8 Responses

  1. I see a market for clip-on ipad handles.

    oh and that 8% of parents are stupid.

  2. Given that Squaretrade have prepared a report that suggests that a claim will be made by 30.3% of those insured at what point do Squaretrade go out of business?

    Their insurance premiums are priced at around 20% of the product price and this includes taxes.

    Surely no insurance company could survive with that sort of statistic.

  3. Yes I see. The headline 30.3% figure is after 3 years. 10% in the first year and rising to 20% in the second year. That means that Squaretrade only have to pay out on an average of 15% of the products so assuming a write off they make 5%.

    The 30.3% headline is a little missleading as Squaretrade don’t actually insure half of this timeframe and they are interpolating into the future as the ipad has only been around for 2 years.

    That is statistics for you.

  4. If I was selling Ipad warranties I would say that 33% were going to get damaged as well.

    Now squaretrade will sit back and wait for all the new customers that take out their warranties.

    Is there any evidence to back up this statement



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