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Archived Copies of Warranty Week
December 2002 to Today
Computer Warranty Claims & Accruals:
The companies whose brand names go on the front of the computer continue to pay the lion's share of warranty claims. Makers of disk drives, printed circuits, semiconductors, and most types of peripherals see a significantly smaller share of warranty claims.
August 24, 2004
Setting Warranty Policy for Products That Generate Annuity Streams:
Most warranty-management analysis concerns warranty as cost, the effect of warranty on customer satisfaction, or the signaling impact of warranty on customers. This article describes a study where the focus was not on the product under warranty, but rather on the effect that warranty length might have on the sales of related peripherals and supplies. These sales generate annuity streams for the manufacturer as long as the product remains in operation. However, cost savings from a shorter warranty period must be weighed against potential lost profit from reduced annuity streams. A shorter warranty policy might cause products to drop out of active use sooner, and the cost savings from a shorter warranty policy therefore might be outweighed by the lost annuity profits.
July 13, 2004
Warranty in the IT Industry:
Readers ask for more details on warranty claims and accruals in the computer, telecom, semiconductor, disk drive, and peripherals industry sectors.
January 12, 2004
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