Elena wants to know if she should buy and extended warranty on her iPhone. Leo says that the new Apple Care, called Apple Care Plus, is beneficial because it covers damage. It's $100 (with a $79 co-pay) and it covers two incidents. Leo says that often, Apple will replace a broken iPhone for $200. So an extended warranty is a profit center for Apple, and Leo nevers buys it. In the long run, it's just plain cheaper. If Elena's the type of person who has butter fingers, Apple Care can buy peace of mind.