Extended warranties and service contracts can be extremely lucrative for manufacturers
and retailers. Analysts estimate that warranty sales have accounted for a large percentage
of Best Buy’s operating profits.62 Despite evidence that extended warranties do not pay off,
some consumers value the peace of mind.63 These warranties still generate multibillion dollars
in revenue for electronic goods in the United States, though the total has declined as consumers
have become more comfortable seeking solutions to technical problems online or from
friends