Broken iPhones have cost $5.9 billion in US, study finds

Sep 18, 2012 by Mary Diduch

An iPhone case can cost as little as $5, with more expensive protectors going for as much as $80. But broken iPhones have cost Americans $5.9 billion since their launch in 2007, according to a study released Tuesday by San Francisco-based SquareTrade, a consumer electronics protection plan provider.

The study comes about a week after Apple introduced the latest generation of its smart phone, the 5. The Cupertino, Calif.-based company on Monday said it had received 2 million pre-orders of the iPhone 5 in 24 hours, more than double the October 2011 iPhone 4S record.

The study also found that 30 percent of owners damaged their iPhones within the past year. Accidental damage is 10 times more common than loss or theft.

The most common way to damage an iPhone is by dropping it, followed by iPhones falling into toilets, pools or lakes; sliding off laps; being knocked off tables; and getting drenched in liquid, said Ty Shay, SquareTrade's chief marketing officer.

SquareTrade's fastest-growing plan is for accidental protection, he said.

"These actions can happen anytime, and a case is not necessarily going to protect you every time," Shay said.

Rasel Uddin, who works at a Street Talk phone accessory kiosk in Paramus, N.J., said iPhone cases are the kiosk's most popular product.

But with the release of the new iPhone in stores on Friday – and new cases to go with them - it is likely they won't be getting any more shipments of older-generation cases, whose $15 to $20 prices may drop, he said.

"This is our last stock," Uddin said.

SquareTrade does not release sales data; however, the company has seen a big jump in sales this year. Pre-orders of iPhone 5 coverage are higher than for the iPhone 4S release, Shay said.

All iPhones come with a year of hardware repair coverage and 90 days of telephone technical support. Owners can then buy AppleCare+ for iPhone for $99, which extends this to two years after purchase and adds coverage for two incidents of accidental damage from handling, subject to $49 service fees, according to Apple's website.

AT&T offers mobile insurance within 30 days of activation for $6.99 a month, which covers up to two claims of , theft or loss a year with up to a $199 deductible. Verizon Wireless's total equipment coverage plan is similar but can start after Apple's warranty ends and costs $9.99 a month.

At SquareTrade, iPhone protection costs $99 for two years with a $50 deductible. Another online insurer is Worth Ave. Group, which has iPhone protection plans against drops, natural disasters, thefts and more for one to three years, depending on phone model, with a $50 deductible.

While many iPhone users go to the Apple store or their mobile retailer to fix their phones, some replace broken glass plates through other vendors.

Scott Casey of Bloomfield, N.J., manages the iColor kiosk, which replaces the glass plates – usually with colored ones - of iPhones and other Apple products, that opened in Willowbrook Mall in Wayne, N.J., a few months ago.

It costs $99 to redo both plates and takes 15 to 20 minutes, Casey said.

Since the new iPhone, which will have a longer and thinner body, will still have a glass front, Casey expects replacing the plates will be a similar process.

Shay said the could be more durable, because it is made out of light aluminum, which is more difficult to break, and has glass on one side instead of both.

But the number and cost of accidents may rise because "accidents are happening more frequently as people use them more often," he said.

SquareTrade surveyed a random sample of 2,000 iPhone users, asking about the cost of repairs, replacements and insurance deductibles for physically damaged iPhones. Survey Sampling International then collected the responses, and the overall cost estimate was projected against ComScore's May 2012 total smart-phone market size.

Explore further: Samsung debuts new Nook tablet with larger screen

3 /5 (4 votes)
add to favorites email to friend print save as pdf

Related Stories

IPhone insurance now available, but too expensive?

Jun 29, 2010

(AP) -- Absent-minded iPhone users can now insure their devices against loss or accidents. But with a $12 monthly fee and a $199 deductible for the latest model, it might make more sense to just learn to be ...

US carrier offers first iPhone on prepaid plan

May 31, 2012

Cricket Communications said Thursday it would be the first US carrier to offer the iPhone to customers under a prepaid plan, a move expanding the footprint of the wildly popular Apple device.

Recommended for you

Apple computer sells for record $905K in NY

9 hours ago

One of the first Apple computers ever built has sold in New York for $905,000, leading Bonhams auction house to declare it the world's most expensive computer relic.

Review: Better cameras, less glare in iPad Air 2

Oct 22, 2014

If I've seen you taking photos with a tablet computer, I've probably made fun of you (though maybe not to your face, depending on how big you are). I'm old school: I much prefer looking through the viewfinder ...

Samsung phones cleared for US government use

Oct 21, 2014

Samsung Electronics Co. said Tuesday some of its Galaxy mobile devices were approved by the National Security Agency for use with classified U.S. government networks and data, a boost to the company's efforts to expand in ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

defactoseven
3 / 5 (2) Sep 19, 2012
This advertisement brought to you by those good people at Apple.

The company that pays this site to bore us with Apple nonsense on a daily basis.