Warranty is not offered by the resellers or retailers. Warranty on the drives is offered by the manufacturer - Intel. Also , it appears you are not well informed on the topic at hand. If you did you would have known that the price difference between the OEM pack & the retail pack on Intel SSD drives is not more than 5-7 bucks , clearly not enough to account for the huge difference in warranty !
Good Evening and Welcome to ECON 101
Extended Warranty = Insurance.
He cost of a warranty is directly related to the probability a device might fail.
Most electronic devices that have any kind of a warranty related issue are going to fail in the first year (usually in the first 30 days) so these early life failures are not a factor.
The cost to extend the warranty then becomes a trade of between expected life of a product and expected failure rate.
If the expected life is long (2x to 3x the warranty), it is not a factor is the cost.
Expected failure rates can vary, but usually 1% failure rate between 1 year and 5 years could be considered “normal”. (More than that and the factory quality people will be all over it.)
Some products expected failure rates are much higher or the life expectancy is shorter and your extended warranty price will go way up. (You should have seen what the cell phone company wants for an extended warranty since they expect phone to last about two years, the 2 year warranty was almost the price of the phone.)
So if you that a theoretical device that cost $300.00 with an expected failure rate of 1%, the manufacture’s warranty cost are $3.
No one works for cost, so add a 100% mark-up and you get a $6 to cover a product extended warranty.
But back to the OEM who can do the math as easily as the next person and knows that if they pay $6 for the warranty, the real expected cost is about $3. If the OEM plans on selling 100,000 units, he would prefer to not have the $600,000 cost of an extended warranty when he can just plan on being self-insured and spending $300.000 later to cover the cost of the “expected” failures and pocket the other $300,000.
Not being an OEM with large numbers to look at, the retail consumer is willing to pay the extra $6 for the added insurance.
Intel try’s to please both by offering retail packaged material and OEM packaged material, but if you don’t pay the premium, you don’t get the insurance.
Warranties are offer by OEM (http://support.dell.com/support/topics/global.aspx/support/my_systems_info/details )
and manufacturer’s http://www.intel.com/p/en_US/support/warranty
as well as other insurance companies that specialize in extended warranties.(http://www.squaretrade.com/pages/)
Each level tend to charge more than a manufacture, because they have a higher base cost, sell less, have higher overhead and generally offer a more generic warranty. (i.e $300 Computer hard drive warranty for $50)
I do like your title. A buyer should be aware of what they are buying and a big part of that is checking warranty information before you buy.
This concludes our ECON 101 class for today, please be prepared for a test on Friday.
I do agree with the thesis and the theory. The problem is ( as is the case with most theories) that it fails to address the practical needs of users like myself. Perhaps I'd done a poor job of stating my problem in the first place, so I'll try again and see what new theory comes flying out to address this one :
Background & Problem Statement:
- User has a need to upgrade three (3), T410s laptops that came with 80GB, 1.8 " Intel G2 SSD drives to 160 GB, 1.8 " G3 SSD drives.
- The release of the G3 drives in the 1.8 " form factor trailed that of the 2.5 " by 4 months.
- Additionally the 1.8 " drives are only available in the OEM pack anywhere you lookand I mean all retailers , resellers, OEMs- online , brick and mortar stores you name it. I have scoured the entire web and haven't been able to find a single source advertising the retail pack anywhere.
- As an individual I am willing to pay the extra $ 6 to get the extended 5 warranty as I have determined that it is a small price to pay forthe extra peace of mind.
My question si why wouldn't Intel release the retail packs at the same time it releases the OEM pack and it seems unfair that we have had to wait this long to get the G3 in the 1.8" form factor in the first place and now this ?
That one is harder to address.
The OEM pack usually releases first to get OEM the opportunity to integrate a new product and release Time to Market with the product release.
But since the OEM's are releasing now, where is the retail customer product?
A good question, which I can't answer.
Maybe someone in the SSD marketing group can comment.
An acceptable solution would be for INTEL to offer up the extended warranty on the OEM pack being sold through retailers like Newegg or Buy.com , to end consumers like myself. I don't care much for the additional cables and/ or cases that are part of the Retail package except I do care about the extra warranty.
Just wanted to clarify that the 1.8 inch 320 series OEM drive does have some warranty differences, but that it's still a five year limited warranty. Read about it in detail here:
Let me know if you have any other questions.
Scott, Intel Corporation