Taking the measure of the computer warranty scam
Credit Microsoft for moving fast to try and recover from its Xbox stumble. Truth be told, management didn't really have an alternative but to pledge to fix the faulty consoles immediately. But I'm not about to strain my throat singing hosannas.
U.S. customers used to be covered by a one-year warranty (!), while European Xbox owners had two-year coverage. Now every Xbox owner in the world will be protected for three years. What do I think? As former New Jersey Nets forward Derrick Coleman once put it during a particularly touching moment with the press, "Well, whoopty damned do."
Microsoft's not doing anyone favors. Three years should be the bare minimum.
My critique extends far beyond Microsoft. When the subject turns to product warranties I can't think of a single technology vendor that covers itself in glory. On the one hand, they ladle on the hyperbole to advertise their touching dedication to customers. But then they stiff us with a single year of protection. Of course, you can always extend the warranty's term, but that will cost you.
"What? You expect a computer to work for more than 12 months?" a colleague chastised me (tongue in cheek, natch). "Do I have to call you an idiot?"
That brought a smile and a wince.
What's so unreasonable about expecting computer hardware not to malfunction within the first year of usage? If that qualifies someone as an idiot, I plead guilty. And by the way, fellow sheep, how did we ever submit to a upside-down world where we assume these multi-thousand dollar marvels of the 21st century will crap out after their first year of life?
Of course, the technology suppliers are only too delighted to sell us extended warranties. The margins are great and salesmen love them. And if you're a worrywart like me, you'll gladly sign on the line that's dotted--anything to buy peace of mind.
This is one of the biggest scams around. I can't figure out why consumer advocates aren't raising bloody hell with their elected representatives in Congress. Meanwhile, the best we can hope for is the kindness of strangers--that the industry's powers-that-be one day decide to do right by their customers. Not that I expect big changes any time soon. These folks are having too much fun living large by making the rest of us pay for their shoddy workmanship.
Charles Cooper has covered technology and business for more than 25 years. Before joining CNET News, he worked at the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet. E-mail Charlie. 
There are still some companies out there that provide a decent warranty on their products. Netgear's ProSafe network switches are covered by a lifetime warranty (and have a MTBF of 7-10 years or more). HP's LCD monitors typically come with a 3 year parts and labor warranty. You just have to do your homework and find the best deal.
would be somewhat acceptable if the console was reliable. 3
years would normally be expensive overkill (and would **** off
the retailers, who make much more on warrantees than they do
on console sales), but in this case it is a helpful acknowledgment
that there have been some serious reliability problems that
consumers need to be reassured about.
It's damage control, to be sure. But it's welcome damage
control.
have gone bankrupt years ago.
Maybe it is a good idea!
I use a horrible case management software, and we call the manufacturer once a month just because there are show stopping bugs. Yep, we have a "software warranty" aka support contract that gets us fixes/patches fast.
Doen't like it? Stop buying the products. Or use a manufacturer that offers a greater warranty? Don't see any, well if it was in such demand, then you would see a business opportunity. Do like Hyundai does and offer a longer warranty than the other guys.
Man, does blog on cnet = b*tch constantly or talk about iphone or second life?
status quo is swell, great for you. as for the gazillions of other
folks who are in the same boat, i don't mind going to bat for them.
about 5 - 10 years and Sun Microsystems Ultra SPARC 10 - 20
years. So I guess it depends on the quality you want... It would be
great if ALL computers lasted at least 10 years. As far as
warranties, with all the stupid loop holes I wouldn't put much
assurance in to a warranty.
warranty was up. HP techs were at a loss to help.
Any attempt to Email HP required you enter a serial number; unfortunately HP didn't recognize the serial number of their own drive. A letter to the manager of Customer Service has been unanswered for over a month. Yep, it has run out of warranty in that month.
Buyer beware.
problem? You usually get some guy from overseas that gives
you canned info, and can't give you a straight answer. Not to
long ago you could talk to someone who you could understand
and could understand you and the answers of how to get
something fixed where quick and easy. Now you sit on a phonew
some three hrs and have to argue to get them to replace their
product in a timely manner. My Dell has had problems till some
6 months ago and the warranty Dell gave me was like pulling
teeth. While my computer works well now. It was from learning
not to call Dell for help, but to talk to my tech buds and me to
figure it out. If people could just get good service from these
manufacturers, then most of these big box stores would have to
stop selling those extended service plans, because no one would
want them, but they mess up all the time and we are at times
buying them so they don't break
- In most cases 1 year is more than enough
- by Mergatroid Mania July 8, 2007 1:58 AM PDT
- Where do I begin?
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- Say what?
- by charlie cooper July 8, 2007 5:53 PM PDT
- "1 year warranty on most consumer items is more than
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- Wow
- by devbost July 9, 2007 11:00 AM PDT
- "A warranty is ment to protect you from defects in workmanship. It's not a guarentee that the goods you purchase will never break down."
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- That is bull crap.
- by mriffon July 9, 2007 6:49 PM PDT
- You don't know where he's coming from. He's saying that they make things so cheap and charge way more than a fair amount for the craftsmanship put into the items. And all just to make a little more money. Then you have to go and buy yourself a new part or extended coverage just to replace (or just in case you need to replace) a part that is not made the best quality that it could be. If they just decided to start making electronics with the quailty that they could be made with, consumers would be much more happy. But this would stop the big companies from making as much money on replacement parts and warranties. And this can really kill the little guys. The guys who work to get money instead of making faulty equipment that has to replaced so often. And you know what I'm talking about the TVs that go bad after 4 years when there are TVs still around from 20 years ago without any problems or repairs; or the CD players that die out after less than a year when my parents still own and regularly use about 3 different record players, which have never been serviced. So don't go telling him that he is dumb and tell him to stop 'blatherine on' when you obviously have no idea what you're talking about.
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(17 Comments)I agree that extended warranties, in most cases, are not worth the money. Consumer websites will tell you that. The exceptions are large ticket items where an out-of-warranty repair can cost big bucks, or where common problems like blown bulbs in DLP TVs can be costly.
In most cases you will save more money by not buying the extended warranty. Purchasing one just because you're uneasy is just dumb. Read up on it before blathering on in a public blog.
1 year warranty on most consumer items is more than enough, and by no means any type of scam.
I work in the electronics service industry and I repair all sorts of goods under warranty and out of warranty.
A warranty is ment to protect you from defects in workmanship. It's not a guarentee that the goods you purchase will never break down. Being human, we have yet to invent ANYTHING that is perfect and will last forever.
Everything made by human hands has a mean time before failure. This means some items will break down sooner, and some later. Warranties protect you from the items that would break down sooner.
Most items, having lasted a year, will continue to function for years to come. A line must be drawn somewhere for the end of the manufacturers responsibility and the begining of the consumer's. Things simply do not last forever.
Consumers, purchasing goods made by humans, must understand that they will eventually break down. That's life. If you purchase something, you will eventually have to repair it because it will wear out.
Whenever I purchase an item with more than 1 year on it, I look at it as a free bonus, not a right.
enough..."
heavens to mergaroid, my good mergatroid. but are you kidding
me? all throughout my computer-buying adulthood that has
NEVER been the case. my wife's PC, which i'm now using to
respond to your post, was inhabited by a demon that raised its
ugly head 1.5 years after we bought the machine. and yeah, i
purchased a 3 year warranty so i was protected. but had i
declined to buy the additional coverage, i would have been
hosed. no doubt, an anecdote here or there doesn't make a rule.
but 1 year is in no way, shape or form sufficient. consumers
need a more fair deal. my 2 cents
Of course, as a consumer, I will be happy to make the case that the workmanship in question should be defined in part by the quality of the materials used. If a manufacturer is using materials that I have to worry will being breaking down after one year, especially for a $1000+ item such as a personal computer, then suffice it to say that would not be a vendor I'd want to purchase anything from.
"Being human, we have yet to invent ANYTHING that is perfect and will last forever."
Neither Charles nor anyone else commenting on this piece has demanded that computers or related goods last forever. Is it your position that expecting a minimum of three years trouble-free operation from a computer I've paid more than a thousand bucks for is unreasonable? Would you apply the same blanket criteria to cars? A one-year warranty on your new Escalade is perfectly sufficient?
"A line must be drawn somewhere for the end of the manufacturers responsibility and the begining of the consumer's."
Perhaps, but the manufacturers who have confidence in the quality of their product and are willing to back it up with a lengthy warranty will be those with an edge in the marketplace. A manufacturer whose attitude is that a one-year warranty on an expensive product such as a computer is sufficient for the reason that "well, things just don't last forever" is not going to inspire much confidence in me that they will stand behind the product I've purchased if I experience a problem.
"Whenever I purchase an item with more than 1 year on it, I look at it as a free bonus, not a right."
And if that works for you, great. But if two vendors are offering a more-or-less identical PC for the same price, the the one who offers a three-year warranty is probably going to get my business over the one who is only offering a one-year warranty. I don't look upon a warranty period of over a year as a right. I look at it as something that a discriminating consumer will factor into their decision. Let the market decide.