Optus offers 24-month handset warranties

 

Steps up to the plate to cover iPhone customers.

Optus has agreed to provide 24-month warranties for all of its mobile handset customers - including those on plans bundled with Apple iPhones - following an ACCC crackdown.

The competition watchdog has led a long campaign to force Australia's telcos to offer warranties on handsets that meet the length of service plans customers are locked in to.

Vodafone signed an undertaking in May 2010 and Telstra in October 2010 to offer 24-month warranties - but both of these specifically exempted warranties for Apple's iPhone.

iTnews has learned today that Apple continues to refuse to offer its telco partners 24-month warranties or let any third party repair its devices.

VHA had to come to an agreement with Apple whereby those customers with faulty iPhones outside of Apple's 12-month warranty could purchase a refurbished (ie repaired) iPhone for $288.

But iTnews has learned that Optus - the last to sign an undertaking with the ACCC - has gone one step further - and agreed to cover the repair costs of a faulty device for the second half of a customer's 24-month warranty at its own cost.

Apple's competitors, most recently Nokia, have struck agreements with Optus to ensure customers get a full 24-month service without placing too greater burden on customer or carrier. In the case of Nokia, the manufacturer will take on some of the repair work at its own cost.

ACCC chair Graeme Samuel said he was pleased with Optus' move.

"We now have a situation where consumers who purchase a mobile phone on a fixed contract have a warranty for the life of the contract," Samuel said in a statement today.

Samuel said retailers (such as telcos) "cannot wipe your hands clean of a faulty product just because the manufacturer's warranty period has ended, particularly when your product is supplied in conjunction with a lock-in contract that is longer than the manufacturer's warranty period."

Samuel predicted in October 2010 that should Apple continue to be "difficult" with its carrier partners, its belligerence would only drive up the prices of plans featuring iPhones in comparison with other smartphones and harm its competitive position in the marketplace.

In a poll run on iTnews between October 2010 and November 2010, 81 percent of over 1000 respondents said they would expect Apple to offer 24-month warranties rather than have telcos absorb the cost of iPhone repairs in its plans (19 percent).

Apple was offered an opportunity to comment, but again declined.

Copyright © iTnews.com.au . All rights reserved.


Optus offers 24-month handset warranties
"Ha, what a joke. I bought a prepaid Nokia slider phone from an Optus store about 3 months ago and last week it literally fell apart in my hands. The Optus store deemed it "physical damage". The ..."
By Digger11
 
 
 
Comments: 7
laman
Jan 7, 2011 6:13 PM
It does not really matter whether Apple offers 24 months warranty or not. When you are paying $1000 for a mobile phone, it is expected to last more than 12 months anyway. According to the Department of Fair Trading, one should be able to return the costy phone for free repair if it fails after 12 months period, but I am not sure for how much longer though.
legless
Jan 7, 2011 10:58 PM
Exactly right. If one buys one of these phones or anything else on a 2 year contract, the phone should be serviceable for at least that 2 year period. If the phone maker won't provide the warranty then it's up to the company who holds the contract (ie the Telco). $288 to replace a phone with someone else's dodgy repaired phone, when said phone should still be working after 1 year, I don't think so.

From my point of view though, if Apple doesn't expect its dodgy products to last and won't quarantee its products for more than 12 months, who the hell would want to buy one? Oh that would be the people with more money than sense who have to have the latest everything and probably buy a new phone every year anyway. Apple can't lose with customers like that.
Pilotyoda
Jan 8, 2011 9:50 AM
Nearly 40 people in our IT dept. Not one Apple product between them.
Thinking of getting a new phone. I know what NOT to buy.
BrettWinterford
Jan 8, 2011 1:22 PM
@legless - you've nailed it mate. It is incredible that a company like Apple doesn't have enough faith in its products to back them for two years.
gteeb
Jan 10, 2011 1:55 PM
@legless - yes, you are absolutely right.

You wonder what Apple have to fear about the 24 month warranty? That their phones are statistically likely to break after 12 months?

I just hope that the entire cost of the telcos providing a warranty on an Apple phone falls on those buying the iPhone and isn't cross-subsidised by additional charges on those who buy other manufacturer's phones.
Ezy2Confuze
Jan 10, 2011 5:20 PM
gteeb makes a good point, if iToys on contracts end up being more just to cover the Telco's costs of a new phone, then Apple will surely have to re-think their strategy.
Digger11
Jan 11, 2011 1:20 PM
Ha, what a joke. I bought a prepaid Nokia slider phone from an Optus store about 3 months ago and last week it literally fell apart in my hands.

The Optus store deemed it "physical damage". The phone has hardly been used and never dropped - the slider just snapped off with 1/2 the case when I slid it open one morning.
When I demanded they send it off to get repaired, they "demanded" a $50 deposit to check it out and then said that it would 99% chance I would not get my money back nor my phone back, as Nokia never fix this type of fault under Warranty.
I rang the TIO and they couldn't care less - so I am out $229 for a new phone.
3 year or 1,000,000 year warranties are useless if the little buggers will jsut lie to get out of them.
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