This will become more common once consumer groups set their focus on Apple.  I know our local (NZ) consumer agencies need to stand up.  Numerous computer suppliers offer extended warranties, of which are not required, because regardless of the official warrantee, our local Consumer Guarantees Act states that an item must be durable and fit for purpose.  

The hard view on computers is 

If you have a computer and the warranty is for one year, that doesn't mean that you expect a new computer to only last one year. It is reasonable to expect that a new computer would last at least five years.

But, because its harder for an individual to enforce the Act, a lot of people will pay for their own goods, especially when dealing with foreign support services, which Apple provides here

First of all a correction, the actual name of the gentleman is Jorge Morgado,  not  George Morgad.

Second, it's a fair question. On the Apple's US and PT websites it stated that "For up to three years from your computer's original purchase date, the AppleCare Protection Plan" so... in the US it's the standard 1 year + 2 more. So you are buying two more years. On EU every product has 2 years of warranty so you are buying 1 more year it seams clear.
But the thing is that APPLE, in  many cases, is giving only one year warranty. Resellers like WORTEN, are even putting up signs saying that "in the case of any warranty issues with Apple products, those will be handled by Apple itself"-

So there are many grey areas. APPLE is not giving 2years of warranty, and the stores don't want to be liable, if APPLE is not by their side.

Question: Does Apple make a profit on Applecare? If they do, I would question the ethics of it. It would be fair enough for the scheme to cover its costs, but it should be a service to customers rather than a source of profit.

Wrong thread.

I think one time this 2 vs 1 year warranty problem should be solved on European Community, and not country-by-country level. Some EU institution should force Apple to operate according the law in the region. Selling this highly priced and "phenomenal" products Apple should make ensure its customers that Apple itself believes the products it produces can be problems free for at least 2 or 3 years worldwide.

Many products in EU have 3, and some even 5 years warranty by default.

Quote:

Originally Posted by allblue 

Question: Does Apple make a profit on Applecare? If they do, I would question the ethics of it. It would be fair enough for the scheme to cover its costs, but it should be a service to customers rather than a source of profit.

All extended warranties are meant to be huge profit makers for the companies that sell them.  That's why many companies like Best Buy and others push their employees to sell the warranties to customers.  It's insurance, you don't expect insurance companies to be non-profit do you?

Quote:

Originally Posted by nonnu 

First of all a correction, the actual name of the gentleman is Jorge Morgado,  not  George Morgad.

 

Second, it's a fair question. On the Apple's US and PT websites it stated that "For up to three years from your computer's original purchase date, the AppleCare Protection Plan" so... in the US it's the standard 1 year + 2 more. So you are buying two more years. On EU every product has 2 years of warranty so you are buying 1 more year it seams clear.
But the thing is that APPLE, in  many cases, is giving only one year warranty. Resellers like WORTEN, are even putting up signs saying that "in the case of any warranty issues with Apple products, those will be handled by Apple itself"-

 

So there are many grey areas. APPLE is not giving 2years of warranty, and the stores don't want to be liable, if APPLE is not by their side.

Apparently it's not as open and shut as you make it out to be, or as I thought it was after the Italian verdict.  I was at the Apple Store in Dresden, Germany and chatted with a couple of the Genius Bar employees while they were trying to replace my defective factory unlocked iPhone 4s originally purchased in America (for anyone whose in that same situation they can't, must be replaced in North America...nonsense).  They said that the way the EU law reads and the German government has interpreted the second year only requires the manufacturer to replace products with flaws that existed at the time of delivery (not found at the time of delivery like the article says).  However at least in Germany it is not accepted that any flaw within 2 years must have been present at delivery.  The guys at the Genius Bar often have to go through this with people because they have some problem that developed with use after the first year but it isn't actually covered anymore.  So, there is something to be said for selling the AppleCare for the 2nd and 3rd years.

Some EU countries apparently have more consumer friendly interpretations of the law that do require 2 years of complete warranty, but it isn't a EU wide policy for 2 years of complete manufacturers warranty.

Quote:

Originally Posted by allblue 

Question: Does Apple make a profit on Applecare? If they do, I would question the ethics of it. It would be fair enough for the scheme to cover its costs, but it should be a service to customers rather than a source of profit.

It they didn't make a profit, and just cover costs, you would probably find that third-party warranty companies would complain of anti-competitive behaviour.

Apple certainly do make a profit, why else would their warranty be more expensive than alternatives (and they have access to cheap spares)