SquareTrade Warranty Blog

Smartbooks vs. Netbooks: First Lenovo Smartbook Unveiled.

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Are you excited about getting a smartbook? Qualcomm, the world's largest maker of computer chips for mobile phones, gave us a sneak peak yesterday of this new product category. According to Qualcomm, "A smartbook is what you get when you marry a smartphone and a netbook."

Laptops, Netbooks, Smart phones and...Smartbooks?

No Tricks just Treats at SquareTrade

Eep - what happened to all the birthday decorations?! Things are getting spooky here at SquareTrade HQ! OK, so it's not really spooky. Things like $100 deductibles for your cell phone insurance would be a scary thought - but you won't find any of that around here! No tricks either.
Instead, there's talk of gutting pumpkins...

Vodafone follows Orange. End of US iPhone exclusivity?

To date, being an iPhone customer in the U.S. has meant being married to AT&T, for better or worse.

For nearly two years, O2 has also enjoyed a parallel position with exclusive rights to sell Apple's iPhones in the U.K. 

 

This week, iPhone owners across the pond watched in excitement as two rival carriers stepped in to bring an end to O2's exclusive deal with Apple. Many in the U.S. now wonder what the implications are for AT&T's exclusive partnership in the U.S.

Apple makes global moves to boost iPhone sales: UK, others transitioning to multicarriers

On Monday, France Telecom's mobile carrier Orange revealed that it would be bringing Apple's iPhone to the UK by the end of the year. Within 24 hours, Vodafone announced it will soon sell the iPhone in the UK and Ireland.

While Vodafone won't have the phones in time for Christmas, the announcements of these two network rivals mark the end of the exclusive UK deal that O2 had enjoyed over the iPhone.

Exclusive deals were the norm when the iPhone originally rolled out in 2007. In Germany, for example, T-Mobile still has exclusive deals with Apple on the iPhone. But Vodafone's announcement has analysts stating that iPhone exclusivity is rapidly coming to an end.

AT&T seems pleased with iPhone MMS

AT&T finally activated Multimedia Messaging Service (MMS) for Apple's iPhone 3G and 3GS phones late last week.

Like several iPhone users nationwide, I waited patiently to receive the following message from AT&T (pictured below) informing me of the update.

Depending on who you ask, the activation went smoothly. AT&T seems pleased. Are you?

The update went seamlessly for me but several early users reported transmission delays on AT&T's facebook fanpage.

There were even discussions on the Apple support forums complaining about the MMS 'Message Send Failure.'

The lack of MMS capabilities has often been targeted as a major weakness of the iPhone - especially since the BlackBerry and even most entry-level handsets have had this capability for years.

For its part, Apple included an update for this feature in its earlier 3.0 iPhone software update released this summer.  AT&T, on the other hand, said it wasn't ready to roll out the feature for fear that it's network would not be able to handle the strain.

Some might say the complaints rolling in are validating AT&T's earlier concerns.

Is MMS working for you? Let us know in comments below or join @SquareTrade in the conversation on twitter.

iPhone failures from moisture - beware of sweat and shower fog!

There has a bit of noise in the news lately about Apple’s policy towards iPhones with moisture damage.   A lot of complaints have been surfacing on twitter, forums and blogs that iPhones are so sensitive to moisture damage that a sweaty hand at the gym or a few episodes of being in the same room as a steamy shower can trigger the moisture sensor and cause a manufacturer’s warranty claim to be rejected by Apple.  Not good.  I bring my iPhone to the gym with me all the time, and I typically bring it into the bathroom so I can hear it when I shower. 

If you treat your iPhone the way I do, you have reason to be concerned.  Until recently, Apple’s policy towards such claimants was “simply ‘too bad’” - requiring customers to pay the full $399/$499 replacement cost of their phone, according to Amy Davis at Click2houston.com. But with Apple’s new policy, “Customers whose iPhones were damaged from moisture can now purchase a replacement iPhone for the reduced price of $199” – with that $199 getting you a refurbished iPhone.

Still not a great deal in my book, since you can now get a refurbished iPhone from AT&T’s website for $99/$149 for the 8gb and 16gb models, respectively (with new 2-year contract).  But at least it's another option, where you don't have to renew your contract.  It's maybe worthwhile if you just want something to last out your current contract, but if you’re anything like me, you won’t be switching from your iPhone in the foreseeable future!

For all of you that purchased the SquareTrade iPhone warranty, you’re in luck.  Moisture damage is covered by our Accidental Damage from Handling (ADH) policy.  Since AT&T still doesn’t offer insurance for the iPhone, it’s really the only way to protect yourself against moisture damage.  And we’ll also reimburse you for $399 or $499 (8gb / 16gb) minus a $50 deductible if it’s water damage, so you can get a brand new iPhone (with 2 year contract) instead of having to settle for a refurbished model.

We’ve in the process of preparing an update to our research report on iPhone failure rates from last November, and we’ve found water damage to be a significant factor in iPhone ADH claims.  It’s something that we’ll discuss in more detail in our report update.   But for now, I’d encourage anyone who is buying a new iPhone to consider the SquareTrade iPhone warranty to protect against moisture damage and other accidents that aren’t covered by the manufacturer’s warranty!

Oh, by the way:  Our Current Special:  20% off an iPhone warranty.

SquareTrade pays off for GearDiary blogger.

Looks like Wayne Schultz at GearDiary is pretty pleased with SquareTrade as a way to insure his new BlackBerry Bold.  And the accidental damage from handling coverage is his favorite part, thanks to his roommate's tipoff.

So thanks, Wayne.  Thanks, Wayne's roommate.

Read the GearDiary post.

iPhone vs. BlackBerry: the debate continues.

We wanted to see for ourselves just how the two compare, so we took a look at claims information for over 15,000 BlackBerrys, Palms, and iPhones.  Here's what we found out:

-  In the first year of ownership, iPhones give their owners fewer problems than the other two phones.  Its malfunction rate is 5.6% in year one, as opposed to 14.3% for BlackBerry and 21% for Treo.  Solid.

-  When iPhones do have problems, it's usually the touch screen.  Kind of the best part.

-  iPhones are accidentally dropped, cracked, spilled on, etc. more often than the other models.  I now hold onto mine with a death grip.

You can view coverage of our report on TechCrunch, CNBC, LA Times, InternetNews, Ars Technica, PC World, SlashGear, Cult of Mac, or the Unofficial Apple Weblog.

Or, if you want to dive right in, you can download the report and draw your own conclusions.

iPhone 3G line video -- Palo Alto Stanford Shopping Center

You have options.

Lots of people have been asking for details, so here’s the full scoop on the SquareTrade warranty options that’ll be available for the new iPhone 3G:

For 12% of your iPhone’s retail price, you’ll get 3 years of coverage that comes with a 5 day service guarantee. Your phone will be fixed quickly, and if it’s beyond repair you’ll get cash for the full replacement cost so you can buy a new one. Or you can use the cash to buy a cheaper phone and spend the rest on snacks, extend a loan to an entrepreneur in a developing country, take up underwater basket weaving, or whatever.  No refurbs as replacements, no matter what.

So, here’s how it all stacks up. I threw in the specs on AppleCare too, because I know that’s what a lot of people will be considering since it’s the only thing available right in the store when you get your phone. But you have options:

If you think you might be accident prone or just not as lucky as this guy, check out Accidental Damage from Handling coverage. It’s a little bit of an extra expense, but it might end up saving you some heartache.

Personally, I’m really excited about the new iPhone pricing because I don't have AT&T yet... it only applies with a new 2-year contract with them.  So if you don’t get warranty coverage, you’re going to have to pay the full non subsidized price if you ever need to replace your phone (and make sure you type in the full replacement cost when you get a warranty quote so you’re eligible for the full amount of coverage). That’s $399 or $499 – a.k.a. a small fortune.

Update: Click here for most current information on SquareTrade iPhone coverage.

SquareTrade's Report on Simple Vs. Smartphone Reliability

SquareTrade's Report on Smartphone reliability:  Are Smartphones a Smart Choice?

A new study from SquareTrade indicates that smartphones are 50% more likely to fail than simple phones over a 3-year period.

SquareTrade’s data comes from our experience with providing over 100,000 cell phones with warranty coverage.

SquareTrade’s claims database indicates there is an increased material cost of upgrading to a feature-packed smartphone: 1 in 3 smartphones malfunction under normal use within the first 3 years, compared to about 1 in 5 simple phones in the same time period. And this does NOT include accidental damage from dropping your cell phone or getting it wet.

Why the difference in reliability?

Our experience servicing cell phones indicates that simple phones are just that—simple. They have fewer components to malfunction. We see only 3 basic things that fail under normal use on a plain-jane simple phone: the LCD screen, the internal connections to the motherboard and the power port jack.

The biggest problem SquareTrade observes are internal disconnections of the antenna, speaker, or microphone with over 50% of claims relating to a lost connection to the chip. Coming in second at about 25% of claims are broken power ports. And in a close third place at just over 20% are failures related to screens going white, black or in-between.

Smartphones, on the other hand, are bedeviled by precisely what makes you buy them: features.  The added complexity of Bluetooth connectivity, touch pads, full keyboards and big hard drives means that more things can, and will, fail.

Here is how smartphones are dying:
#1 – Loss of features: whether it turns on but doesn’t respond to your frantic button pressing, or doesn’t allow any calls, or won’t connect to Bluetooth, or the touch screen is nonresponsive, roughly 30% of failures we see are related to internal components not working.
#2 – The power port: whether its corrosion, the connector becoming too loose or the internal wire to the motherboard breaking, this represents another 30% of failures observed of phones no longer being able to charge – even after you replace the battery!
#3 – You can’t hear them, they can’t hear you, or you are being disconnected randomly – we see about 20% of failures related to the speaker, microphone or antenna losing connection to the motherboard…and a phone isn’t very helpful as a one-way radio.
#4 – The big screen: the phone works, but about 15% of claims relate to the display back-light going out or the LCD cable is disconnected or gets streaky.
#5 – And the remaining claims relate to a broad assortment of failures such as buttons that fall off, broken USB ports or a camera takes rotten pictures all of a sudden.

So let’s put how Smartphones can leave you Smarting in perspective.

Before you decide to splurge on a $400+ smartphone like an iPhone or Treo…consider this: The cool factor of a smartphone's added features comes with not-so-cool costs that start mounting from the day you buy the phone.

• Price of Phone:
  You will generally spend $200 to $500+ for an iPhone, Blackberry or other smartphone. And that often includes some heavy discounting by carriers (e.g., Verizon, AT&T) so they can lock you into a two-year commitment for their phone service.  However, if you need to replace your phone for any reason (i.e., it fails in a year), you will have to pay full price for a new smartphone (more like $400 to $800).
• Data Costs Big Money:
  On top of your basic phone bill, most carriers charge you a pricey additional data fee so you can access the Internet, download music, send/receive email on your flashy big display.  My quick check shows Verizon Wireless charges an additional $25 to $45 a month for data plans, Sprint charges an additional $20 a month, and T-Mobile charges an additional $20 to $30 a month for their data plans. This is really the place where a smartphone adds up big time!
• Lower Reliability:
  Our claims data indicates you have roughly a 31% chance of having your smartphone fail over three years vs. only a 22% chance with a simple phone. And, if you aren’t ready to resign for a full 2-year commitment, get ready to pay full retail price for the replacement phone. A fairly priced warranty really makes sense given this reliability data.

Let’s add up the cost of a smart phone:

	Simple Phone	Smartphone
Phone price	Simple phones are often free or less than $100 with a 2-year plan	Smartphones generally will set you back $200-$500 when you sign up for a 2-year service plan
Data fee	None (other than text messaging which you will pay for both for simple or smartphone)	$20 to $45 extra per month (that adds up to $720 to $1,600 over 3 years)
Reliability cost	We are seeing roughly 22% odds you will have replace your phone over 3-year time period	We are seeing 31% odds you will have to spend replace…at full retail that is $400 to $800
Extra you spent for that smartphone over 3 years ...		$1,100-$2,600 MORE than a simple phone

So maybe that simple phone you have is looking pretty darn smart now.

If you do buy a smartphone, SquareTrade offers warranties at over 40% less than what you pay Verizon, Sprint, AT&T and T-Mobile. SquareTrade’s warranty on a smartphone is a smart decision. Know you can say “NO” to the overpriced warranty offer from wireless stores and big box retailers.

You will always find the best pricing and the best no-hassle warranty at www.squaretrade.com. Just visit SquareTrade within 30 days of buying a new cell phone or most any other consumer electronic or appliances you buy no matter where you buy the item.