Dell’s Warranty Cash Cow

An article in the Sunday Tribune points out that 20 – 30 % of Dell’s revenue originates from extended warranties and service contracts. This goes some way to explaining why they advertise a laptop/desktop with a 90 day collect and return policy so as to have a low price, yet when you buy online they seem to automatically change this to a 3 year warranty (this has been my experience).
A 3 year policy for a laptop that you lug around a lot makes sense, it does not make sense for a desktop that sits in a corner however. So the next time you shop online pay attention to what is suggested by the supplier.

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