[ksec]

>In the case here for apple care, I'm not sure. What apple charges for repairs almost definitely has markup, so it's possible that they can provide insurance that averages out below the expected "cost" of repairs but still makes apple money.

If you only take Apple's word for it. Their lawyer said in court they do not make any profits for their repairs. And may be running at a lost. Apple then also did a few PR pieces on how they lost tens of millions every year due to repair fraud.

I wouldn't say it is a flat out lie, but it is definitely a spin if you know anything about BOM and operation cost.

The AppleCare Services itself of course make additional profits, it is often the money making item for 3rd party resellers. Selling AC makes more profits for them than iPhone or Mac. If Apple can pass those on to retailers, you can guarantee Apple is making lots of profits on it.

As a matter of facts this is all just Insurance and Data Science. You can buy similar protection from other insurance companies, and you should immediately notice the price difference.