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
How?
Apple made the cost of screen repair too high
That forces customers to buy Applecare
Result?
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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