September 18, 2006
sponsored by NEW
ISSN 1550-9214         

Projector & Copier Warranties:

Unlike other consumer electronics categories, most front projectors have identical parts and labor warranty periods. Projector lamps, however, carry shorter warranties that actually encourage replacements.


Most projector bulbs are warranted for either 90 days or one year, but most also have usage-based warranty periods. If the lamp is used heavily, perhaps as a home TV that's on six hours a day, the warranty could expire on usage after only one or two months. With projector lamps typically selling in a range of $300 to $450 each, this is a significant consideration in terms of warranty.

If the lamp is used only one or two hours per day, the warranty might expire on the calendar alone, but as a worst case -- with the lamp consistently burning out on day 91 -- this could involve a materials cost of $150 a month in quarterly bulb replacements. Even if a $300 bulb lasts six months, that would mean the operating cost could top $50 a month. Even if the lamp is replaced only once a year, this cost is significant compared to the typical $1,500 selling price of the projector itself. So with this product type, we're going to list lamp warranties as a third metric, alongside the overall parts and labor warranties.

Unlike other consumer electronics categories that use a year's parts warranty and a 90-day labor warranty to discourage the pursuit of warranty claims late in the year, most front projectors have identical parts and labor warranty periods. With projector lamps, however, the shorter warranty actually encourages replacements, and the customer usually does the replacing themselves.

With printers, neither the paper nor the ink carries an express warranty (although clearly defective toner cartridges would be replaced). So while there may be a significant ongoing operating cost in consumables, and while the ongoing replacement of ink and paper is a given, this has no bearing on the hardware warranty. With televisions, especially flat screens, the glass usually has a separate and shorter warranty, but it's not ordinarily considered replaceable. So a cracked screen is usually a total loss, especially with CRTs, and the shorter warranty on the screen encourages disposal.

With rear projection units, both the screen and the bulb usually have shorter warranties than the electronics inside, and like these front projectors listed below, the bulbs tend to wear out over time. So perhaps this metric deserves scrutiny too? If so, we may need to go back and revisit the list in the Sept. 7 column. But the replacement bulbs for these units are priced closer to $200 to $250, and they don't burn as bright or as fast as front projection lamps. Replacements are to be expected every three to five years.

Epson warrants most of its projectors for two years, but the projector's lamp is warranted for only 90 days. Even on models with three-year warranties, the projector's lamp is warranted for only 90 days. Optoma does likewise, giving the basic unit either a two- or three-year warranty period, but the bulb is warranted for only 90 days.

InFocus grants either a 90-day or a 180-day warranty on the projector bulb, depending upon the model.

Hitachi warrants its projector lamps for 90 days or 180 hours of use, whichever comes first. NEC warrants its projector lamps for one year or 500 hours.

Mitsubishi warrants most of its lamps for 90 days or 300 hours of use, while the lamps in some models such as the ES100U and the XD490U carry a one-year/1,000-hour warranty. All bulb warranties are parts-only, meaning that the customer must replace the bulb themselves or pay for a technician to do so.

On some models, Panasonic caps both its projectors and its lamps with usage limits. For instance, the PT-AE900U projector is warranted for one year or 2,000 hours, whichever comes first, while the lamp is warranted for 90 days or 500 hours. The projector warranties cover both parts and labor, while the lamps are parts only (customer replaceable units).

NEW Customer Service Companies

 

This Week’s Warranty Week Headlines

General Motors to provide a 5-yr./100,000-mile powertrain warranty on all 2007 cars and light trucks sold in the U.S. and Canada.
Press Release, September 6, 2006
Deutsch/LA to handle $60 million advertising budget for GM's new powertrain warranties.
Adweek, September 6, 2006
New York officials drop some of the charges against former American International Group executives Maurice R. Greenberg and Howard I. Smith.
Business Insurance, September 6, 2006
American Standard Warranty Company licenses 4CS iWarranty software to help manage extended warranties.
Press Release, September 5, 2006
Microsoft Windows XP end user license agreement disclaims all damages, including breaches of contract.
InfoWorld, September 5, 2006
 

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SAS Institute

 

Warranty Headlines (cont’d)

TH Properties introduces five-year home warranties in Malaysia.
Malaysia Star, September 4, 2006
Zandl Group says the iPod backlash has begun, citing battery life as an issue.
Times of London, September 3, 2006
Bridgestone says failure of the Louisiana Superdome's roof during Katrina was an "act of God," not covered under warranty.
Associated Press, September 2, 2006
Hartford tests a fuel cell bus, but it needs a longer warranty to be competitive with diesel models.
Hartford Courant, September 1, 2006
Datalogic UK appoints Mercom to do warranty work on its barcode scanners and handhelds.
Press Release, September 1, 2006
 

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ServiceBench for Service Administrators

 

Warranty Headlines (cont’d)

4CS CEO Ashok Kartham to speak at warranty management webinar on Sept. 7 at 1 PM EDT, joined by Mark Vigoroso of Aberdeen & Jeff Stewart of Takeuchi.
Press Release, August 31, 2006
Attorney says many commercial software warranties aren't much better than "as-is."
InfoWorld, August 31, 2006
Driver wants cracked windshield, first paid for by insurance, to now be repaired under warranty.
Hamilton Spectator, August 31, 2006
Carrier Transicold broadens its extended warranty coverage to include units up to eight years old with up to 16,000 engine run hours.
Press Release, August 30, 2006
Freightliner's SelecTrucks Division covers used Class 8 trucks with a 36-month/300,000-mile warranty.
Press Release, August 29, 2006
 

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4CS iWarranty

 

Warranty Headlines (cont’d)

ServiceMaster may move headquarters to Memphis.
Crain's Chicago Business, August 29, 2006
Tektronix covers two new digital oscilloscopes with a lifetime warranty.
Press Release, August 29, 2006
Prosecutors say Discovery Ford in Michigan may have swindled customers by pocketing extended warranty premiums.
Muskegon Chronicle, August 29, 2006
Ford's PZEV Focus with the 2.0-liter Duratec 20E engine meets California requirements with a 15 year/150,000 mile emissions warranty.
Press Release, August 28, 2006
Hitachi Global Storage Technologies boosts Deskstar 7K500 hard drive's warranty from three years to five.
Press Release, August 28, 2006
 

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Warranty Headlines (cont’d)

SAS Institute announces a new reseller program that will bring business intelligence to a broader customer base.
Press Release, August 28, 2006
Therapedic president says long warranties give a false impression of a product’s useful life.
Furniture Today, August 28, 2006
Better Building Solutions introduces warranty management service for homebuilders.
Press Release, August 26, 2006
Electronic Arts worker says Xbox failure rate much higher than 3-5%, says Capcom's Dead Rising game causes heat problem; Microsoft denys story.
Game Daily Biz, August 25, 2006
Apple to replace for free 1.8 million PowerPC-based notebook batteries affected by recall.
Information Week, August 25, 2006
 

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AMT Warranty Corp.

 

Warranty Headlines (cont’d)

Apple, Dell & Toyota recalls affect iconic brands.
AMR Research, August 25, 2006
General Motors India launches CNG Chevrolet Optra, powered by compressed natural gas, with a two-year 100K warranty.
Gujarat Global, August 25, 2006
Mark Brunelle of Hardware 4 Less sentenced to home confinement for selling counterfeit Compaq parts to federal lab.
WCAX-TV, Concord NH, August 25, 2006
A Warranty replacement, Verizon-style.
InfoWorld, August 25, 2006
Consumers urged to scrutinise warranties, tale of an earpiece that fell apart after a month.
Borneo Bulletin, August 25, 2006
New Web site proofofpurchase.co.uk opens to help consumers manage receipts for products with long warranties.
Net 4 Now UK, August 25, 2006
Student's dad says buy the four-year warranty after son wrecks two laptops at school.
Baltimore Sun, August 24, 2006
Dell details inductor failure on 2003 PowerEdge 1650 servers to refute blog story that they caught fire.
CRN, August 24, 2006
Portland Water District to sell water service line warranties backed by Home Service USA Corp. for $4/month to residential customers.
Press Release, August 23, 2006
Members of the Independent Tire Dealers Group LLC to offer the Sonsio Road Hazard Program in 11 states.
Modern Tire Dealer, August 23, 2006
iPod gray market booms in India, but even for legit Apple units the closest warranty center is in Singapore.
Wired News, August 23, 2006
IBM announces high-end disk array storage systems backed by a four-year warranty to reduce the cost of ownership.
Computerworld, August 22, 2006
Apple Computer once again tops the 19th Annual Reader Satisfaction Survey at PC Magazine.
PC Magazine, August 21, 2006
Laptop's status turns from available to sold out once customer declines to buy the extended warranty.
Ventura County Star, August 21, 2006
Dell says customers must wait 20 business days for a replacement laptop battery.
Information Week, August 21, 2006
Warranty management software can reduce claims 10-15% and boost supplier recovery
Network Magazine, August 2006
Ford promises a cleaner and quieter diesel engine in 2007, backed by a five-year or 100,000-mile warranty.
Press Release, August 21, 2006
Despite recalling two million vehicles, Toyota is able to maintain its quality image.
San Antonio Express-News, August 19, 2006
Duke University students and faculty begin getting reconditioned 30 GB iPods backed by a one-year AppleCare warranty.
Press Release, August 17, 2006
Consumer objects to terms of GE refrigerator icemaker class action settlement, calling extended warranty deadlines unfair.
WBBH-TV Fort Myers FL, August 17, 2006
Kenworth and International rank highest in J.D. Power truck customer satisfaction survey.
Press Release, August 16, 2006
SAS Institute introduces Manufacturing Intelligence Solution in Hong Kong.
Press Release, August 16, 2006
Former Dell technician says company knew about its laptop battery problem for more than two years.
Consumer Affairs, August 15, 2006
Dell plans huge recall of 4.1 million laptop batteries Sony manufactured for it between 2003 and 2006.
Consumer Affairs, August 14, 2006
Financial analysts predict the recall of 4.1 million laptop batteries could cost Dell and its battery supplier Sony $250 million or more.
AMR Research note, August 15, 2006
Deutsche Post seeks 37 million euros in warranty claims from Deutsche Telekom after purchasing some logistics centers from the phone company six years ago.
Bloomberg News, August 15, 2006
Ryder System to cover the powertrain for pre-owned "Road Ready" trucks for up to 12 months or 100,000 miles.
Press Release, August 15, 2006
N.E.W. Customer Service Companies executives have been putting together a Chinese business plan.
Leesburg Today, August 14, 2006
Onex Corp., acquiring Aon Warranty Group, closed its second private equity fund at US$3.45 billion.
Press Release, August 14, 2006
Ingram Micro Inc. to launch a new Services Division to help resellers manage service contracts.
Press Release, August 14, 2006
Warranty service for Bobcat skid steer loaders and excavators in Vietnam to be provided by Vietserve Technology Ltd.
Viet Nam News, August 14, 2006
Dell's customer service problems benefit rival system builders who have better technical support.
CRN, August 11, 2006
Dell says its DellConnect remote troubleshooting tool has served one million customers.
Press Release, August 11, 2006
New Jersey State Police investigate whether bankrupt South Shore Ford dealership pocketed EasyCare extended warranty premiums.
Atlantic City Press, August 11, 2006
Canadian auto parts manufacturer Bosal offers technicians a lifetime warranty on its replacement mufflers.
Auto Service World, August 11, 2006
Freightliner's antitrust lawsuit alleges that GM's Allison Division punishes companies that do not participate in its Edge Program.
MarketWatch, August 10, 2006
Hyundai Motor America executive says warranty costs were cut in half from 2003 to 2006.
Reuters, August 10, 2006
Berkshire Partners LLC and Freeman Spogli & Co. buy a majority interest in N.E.W. Customer Service Companies Inc., giving it an enterprise value of $1.21 billion.
Press Release, August 8, 2006
N.E.W. has more than tripled in value in two years, after being launched with its founder's credit cards.
Washington Post, August 9, 2006
DaimlerChrysler, NextEnergy, and Michigan State University research biofules and auto warranties.
The State News, August 8, 2006
GE Auto Warranty Services appoints Orlando Zayas as president, moving him over from GE's Benefit Solutions business.
Press Release, August 8, 2006 (PDF file)
Warranty Direct Ltd. releases 2006 Warranty Direct Garage Labour Rates Survey, finding wide disparity between regions.
What Car? August 7, 2006
Drivers are flaming mad about blazing Vauxhall Corsas in UK and say company is slow with warranty claims.
Sunday Mail, August 6, 2006
Owner of Town N Country Chevrolet-Olds in Virginia accused of pocketing service contract premiums.
Richmond Times-Dispatch, August 4, 2006
Residents of DeForest's Sunrise Estates say CertainTeed's roof shingles failed after 12 years despite a 25-year warranty.
Wisconsin State Journal, August 4, 2006
Ford recalls 1.2 million trucks, SUVs and vans amid concerns of potential engine fires.
Associated Press, August 3, 2006
Scattered reports continue to surface of Dell laptops bursting into flames without warning.
Consumer Affairs, August 3, 2006
Gateway gross margin drops 2% after a warranty change in estimate.
Press Release, August 3, 2006
Aon Corp. expects sale of warranty group to take place during the fourth quarter, has reclassified AWG as a discontinued operation.
Press Release, August 3, 2006 (PDF file)
Tavant Technologies announces a partnership with SAS Institute for warranty software solutions.
Press Release, August 2, 2006
ServicePower agrees to provide Warrantech with scheduling and dispatch services and quality-of-service surveys.
Press Release, August 2, 2006
Mutual Warranty Company of Denver skips town, may be in Panama.
KMGH-TV Denver, August 2, 2006
Auto insurance company GEICO sells its one millionth mechanical breakdown insurance policy.
Press Release, August 2, 2006
ServiceMaster says its American Home Shield business was up 11% from last year's second quarter.
Press Release, August 1, 2006
Hartford Steam Boiler Inspection and Insurance Co. to sell extended warranties for new and used machinery.
Press Release, August 1, 2006
Crawford & Co. to move its headquarters to a larger building, leasing seven floors from HP in northern Atlanta.
Press Release, August 1, 2006 (PDF file)
Gray market discount electronics products purchased online often have no warranty.
WEWS-TV Cleveland, July 31, 2006
SecuGen Corp. lengthens warranty on Hamster III and Hamster Plus fingerprint scanners from one year to three.
Press Release, July 31, 2006
Hyundai quadrupled US sales, but longer warranties cost it hundreds of millions of dollars per year.
Business Week, July 31, 2006
Xbox 360 owners start a petition to tell Microsoft they want 90-day warranties lengthened to one year.
Xbox Circle, July 30, 2006
 

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