This week, we're moving into the 23-year charts of warranty expenses in the U.S.-based electronics sector, the final of the three industrial sectors we use to visualize our data.

This newsletter is a summary of the warranty expenses of manufacturers in the U.S. electronics sector, in five industry groups: computers, semiconductors, consumer electronics, peripherals, and data storage.

The Manufacturers

Unfortunately for us, three of the largest U.S.-based computer and consumer electronic manufacturers, Apple, Microsoft, and Google, do not disclose their limited warranty expenses in their financial reporting. Google has never published its product warranty expenses, Microsoft stopped in the middle of 2012, and Apple stopped in the middle of 2022.

This warranty report presents data from 334 U.S.-based manufacturers in five industries in the electronics sector, which reported warranty expenses between 2003 and 2025.

34 U.S.-based semiconductor & PCB manufacturers reported warranty expenses in 2025. The largest were Nvidia Corp., Advanced Micro Devices Inc., and Lam Research Corp. We will take a deep dive into this industry in next week's newsletter. In the meantime, take a look at our newsletter "Discrete GPU Warranty Expenses" from April to dive into the two largest warranty reporters in this industry.

In 2025, six U.S.-based computer manufacturers published their warranty expenses: HP Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., IBM Corp., Super Micro Computer Inc., and Unisys Corp.

In 2025, six U.S.-based manufacturers of consumer electronics published their warranty expenses. The largest two were Garmin Ltd. and GoPro Inc.

Voxx International Corp., a maker of audio equipment, was acquired by Gentex Corp. in April 2025, and ceased reporting its warranty expenses. Gentex does report its warranty expenses, but is primarily engaged in the auto parts industry.

In the disk, or data storage, industry, four manufacturers reported their warranty expenses in 2025: Western Digital Corp., Seagate Technology Holdings plc, NetApp Inc., and Quantum Corp.

In the peripherals industry, 13 manufacturers reported warranty expenses in 2025. The largest were Dover Corp., Daktronics Inc., Zebra Technologies Corp., and Diebold Nixdorf Inc.

3D printer manufacturer Markforged Holding Corp. was acquired by Nano Dimension Ltd. in April 2025, and ceased reporting.

Methodology

For each manufacturer in the U.S.-based electronics sector, we perused their annual reports and quarterly financial statements, and gathered three key warranty metrics: the amount of claims paid, the amount of accruals made, and the end-balance of the warranty reserve fund.

In addition, we gathered data on each manufacturer's product sales revenue, and used these to calculate two warranty expense rates: claims as a percentage of sales (the claims rate), and accruals as a percentage of sales (the accrual rate).

Warranty Claims Totals

Figure 1 shows the total warranty claims paid by the manufacturers in the five industries in the electronics sector, from 2003 to 2025.

In 2025, the U.S.-based semiconductor manufacturers paid $1.54 billion in warranty claims, double the amount paid in 2024. We will dive deeper into this rise in next week's newsletter. As we saw in our April 9 newsletter "Discrete GPU Warranty Expenses," this rise was due to a steep increase in Nvidia's warranty costs from 2024 to 2025.

In 2025, the U.S.-based computer OEMs paid $2.02 billion in warranty claims, a -5% decrease from 2024.

Dell paid $897 million in warranty claims in 2025, a 1% increase from 2024. HP paid $764 million in warranty claims in 2025, a -16% decrease.

Super Micro Computer paid $95 million in claims, a 74% increase from the year prior. The manufacturer did not explain this increase in its 10-K or 10-Q financial reports.

Hewlett Packard Enterprise paid $168 million in warranty claims in 2025, a -9% decrease from the year prior. IBM paid $84 million in warranty claims, a 4% increase.

The U.S.-based consumer electronics OEMs paid $108 million in warranty claims in 2025, a 9% increase from 2024.

Garmin paid $96 million in warranty claims in 2025, a 16% increase from 2024. GoPro paid $11 million in claims, a -15% decrease.

The U.S. disk manufacturers paid $143 million in warranty claims in 2025, a -34% decrease from 2024.

Seagate paid $78 million in warranty claims in 2025, a -8% decrease from 2024. Western Digital paid $61 million in warranty claims, a -53% decrease.

The U.S. peripherals manufacturers paid $165 million in warranty claims in 2025, an 8% increase from 2024.

Daktronics paid $61 million in warranty claims in 2025, quadruple its 2024 claims costs. The manufacturer did not offer a direct explanation for this increase in its financial statements, although the reports did remark upon difficulty predicting the warranty costs of its products, LED video displays and scoreboards.

Dover paid $52 million in warranty claims in 2025, a -2% decrease from 2024. Zebra Technologies paid $33 million in claims, a 14% increase. Diebold Nixdorf paid $10 million in warranty claims, a -77% decrease. Corsair paid $9 million in warranty claims, a 64% increase.

Warranty Accrual Totals

Figure 2 shows the total warranty accruals made by the manufacturers in the five industries in the electronics sector, from 2003 to 2025.

The U.S.-based semiconductor industry set aside $3.37 billion in warranty accruals in 2025, an 87% increase from 2024. Again, this rise is due to Nvidia sharply increasing its warranty expenses in 2025.

The U.S.-based computer industry set aside $1.97 billion in warranty accruals in 2025, a 3% increase from 2024.

Dell set aside $900 million in warranty accruals in 2025, a 3% increase from 2024. HP set aside $670 million in warranty accruals, a -7% decrease.

Hewlett Packard Enterprise set aside $206 million in warranty accruals in 2025, a 19% increase. Super Micro Computer set aside $102 million in accruals, a 76% increase. IBM set aside $85 million in accruals, a 4% increase.

The U.S. consumer electronics manufacturers set aside $117 million in warranty accruals in 2025, a 14% increase from 2024.

Garmin set aside $107 million in warranty reserves in 2025, a 19% increase. GoPro set aside $10 million, a -10% decrease.

The U.S.-based disk manufacturers set aside $183 million in warranty accruals in 2025, a 3% increase from 2024.

Western Digital set aside $97 million in warranty accruals in 2025, a -17% decrease. Seagate set aside $83 million in accruals, a 43% increase.

The U.S.-based peripherals manufacturers set aside $172 million in warranty accruals in 2025, a 16% increase from 2024.

Daktronics set aside $66 million in warranty accruals in 2025, quadruple its 2024 accruals.

Dover set aside $51 million in accruals in 2025, a -8% decrease. Zebra Technologies set aside $39 million in accruals in 2025, a 39% increase. Corsair set aside $8 million, a 43% increase. Diebold Nixdorf set aside $7 million, a -82% decrease.

Warranty Expense Rates

Figures 3-7 show the average quarterly warranty claims and accrual rates for each of the five industries in the U.S.-based electronics sector, from 2003 to 2025.

Figure 3 shows the quarterly warranty expense rates for the U.S.-based computer industry.

Over 23 years, the U.S.-based computer industry had an average warranty claims rate of 2.24%, with a standard deviation of 0.77%, and an average warranty accrual rate of 2.24%, with a standard deviation of 0.87%.

In 2025, the computer OEMs had an average claims rate of 1.11%. The quarterly rates ranged from 1.00% in the second quarter, to 1.22% in the first quarter.

In 2025, the computer OEMs had an average warranty accrual rate of 1.05%. The quarterly rates ranged from 0.90% in the second quarter, to 1.18% in the first quarter.

Figure 4 shows the quarterly warranty expense rates for the U.S.-based semiconductor & PCB industry, from 2003 to 2025.

Over 23 years, the semiconductor & PCB manufacturers had an average claims rate of 0.70%, with a standard deviation of 0.24%, and an average accrual rate of 0.78%, with a standard deviation of 0.24%.

In 2025, the U.S. semiconductor industry had an average warranty claims rate of 0.42%. The quarterly rates ranged from 0.24% in the first quarter, to 0.70% in the fourth quarter.

The semiconductor industry had an average accrual rate of 0.95% in 2025. The quarterly rates ranged from 0.40% in the third quarter, to 1.33% in the second quarter.

Figure 5 shows the average quarterly warranty expense rates for the U.S.-based consumer electronics industry, from 2003 to 2025.

Over 23 years, the U.S.-based consumer electronics industry had an average warranty claims rate of 1.50%, with a standard deviation of 0.90%, and an average warranty accrual rate of 1.45%, with a standard deviation of 0.92%.

In 2025, the U.S. consumer electronics industry had an average warranty claims rate of 1.38%. The quarterly rates ranged from 1.21% in the second quarter, to 1.58% in the first quarter.

The U.S. consumer electronics had an average warranty accrual rate of 1.50% in 2025. The quarterly rates ranged from 1.33% in the fourth quarter, to 1.68% in the second quarter.

Figure 6 shows the average quarterly warranty expense rates for the U.S. data storage industry, from 2003 to 2025.

Over 23 years, the U.S. data storage manufacturers had an average warranty claims rate of 1.28%, with a standard deviation of 0.47%, and an average warranty accrual rate of 1.22%, with a standard deviation of 0.48%.

In 2025, the U.S. disk manufacturers had an average warranty claims rate of 0.69%. The quarterly averages ranged from 0.49% in the fourth quarter, to 0.79% in the second quarter.

The U.S. disk manufacturers had an average accrual rate of 1.12% in 2025. The quarterly averages ranged from 0.68% in the fourth quarter, to 1.62% in the first quarter.

Figure 7 shows the average quarterly warranty expense rates for the U.S.-based peripherals manufacturers, from 2003 to 2025.

Over 23 years, the U.S. peripherals manufacturers had an average warranty claims rate of 1.16%, with a standard deviation of 0.25%, and an average accrual rate of 1.12%, with a standard deviation of 0.29%.

In 2025, the U.S.-based peripherals manufacturers had an average claims rate of 1.10%. The quarterly averages ranged from 0.65% in the fourth quarter, to 1.58% in the first quarter.

The peripherals industry had an average warranty accrual rate of 1.12% in 2025. The quarterly averages ranged from 0.68% in the fourth quarter, to 1.62% in the first quarter.

Warranty Reserve Balances

Our final warranty metric is the year-end balance of each manufacturer's warranty reserve fund. Figure 8 shows the warranty reserves held in each of the five industries in the U.S. electronics sector, from 2003 to 2025.

At the end of 2025, the U.S.-based semiconductor & PCB manufacturers held $3.80 billion in warranty reserves, an 85% increase from the end of 2024

The U.S. computer OEMs held $1.30 billion in warranty reserves at the end of 2025, a -6% decrease from the end of 2024.

HP held $452 million in warranty reserves at the end of 2025, a -18% decrease from the end of the year prior. Dell held $431 million in reserves, a 1% increase.

Hewlett Packard Enterprise held $284 million in reserves at the end of 2025, a -6% decrease. IBM held $95 million in reserves, a 25% increase. Super Micro Computer held $23 million, a 26% increase.

The U.S. disk manufacturers held $364 million in warranty reserves at the end of 2025, a 10% increase from the end of 2024.

Western Digital held $177 million in warranty reserves at the end of 2025, a 7% increase. Seagate held $160 million in reserves, an 18% increase. NetApp held $26 million, a -4% decrease.

The U.S. peripherals manufacturers held $149 million in warranty reserves at the end of 2025, a 5% increase.

Dover held $46 million in warranty reserves at the end of 2025, a 9% increase from 2024. Daktronics held $27 million, a -3% decrease. Zebra Technologies held $34 million, a 31% increase. Diebold Nixdorf held $20 million, a -11% decrease. Corsair held $8 million, a -8% decrease.

The U.S. consumer electronics manufacturers held $78 million in warranty reserves at the end of 2025, a 13% increase.

Garmin held $73 million in reserves at the end of 2025, a 17% increase. GoPro held $5 million in reserves, a -26% decrease.

Check out the rest of our series of 23-year charts:

Vehicle Sector

• 23rd Annual Product Warranty Report
• U.S. Passenger Vehicle Warranty Expenses
• U.S. Truck & Bus Warranty Expenses
• U.S. Auto Parts & Powertrain Warranty Expenses
• U.S. Aerospace Warranty Expenses

Building Trades Sector

• U.S. New Home & Building Materials Warranty Expenses
• U.S. HVAC & Appliance Warranty Expenses Expenses
• U.S. Power Generation Equipment Warranty Expenses