But it is also the smartest INSURANCE company

In 2020, it generated $8.8 Billion by selling insurance

Here’s how they did it:

1/ Have you ever imagined Apple being an insurance company?

AppleCare generated 8.8 Billion dollars in 2020

More revenue earnings than Icloud or Apple music business

2/ In 2011, Apple introduced AppleCare+

It is an option that covers accidental damage to Apple products

Apple products are sold worldwide

So as that grows, Apple care will also grow

3/ But what is the biggest loss for any insurance company?

When someone asks for a claim

Because then they have to pay money out of their pockets

4/ But Apple is the only company that never pays for the claim


Apple made the cost of screen repair too high

That forces customers to buy Applecare


Most people opt for Applecare-Thinking it would save them money

/ But even after Applecare, Apple still charges money from its customers

In the form of incidence fee

Which is the actual cost of repair Apple have to bear

6/ So Apple intentionally made repair costs high

Only to make people buy insurance from Apple

And even after the insurance, an incidence fee is charged

So Apple never have to pay insurance claim money from their own pockets

7/ Since users already pay so much amount of money for an Apple product, they do not hesitate to pay more for AppleCare

Applecare is like a flywheel for their business.

More the sale of Apple products, more the sale of AppleCare

9/ This strategy has four stages

a. Initial purchase
b. Buying AppleCare
c. Breakage
d. Unused insurance

10/ Everyone knows not every insurance will get claimed

Apple knows that too!!

The company makes $$ from unused/expired AppleCare insurance

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