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ALEX: You know, Boss, it turns out you were a little off base about Apple’s iPod policy the other day.
ALEX: They actually DO replace the battery if it’s still under warranty. It’s only if the warranty expires that they won’t. And there are places that you can go to buy batteries on your own, so you can change it yourself. And, Apple just instituted a new replacement policy – for $50 a year, they’ll cover the replacement of batteries for $99.
BOSS: So it’s actually $150 for the year you need a new battery?
ALEX: Well… Yes.
BOSS: And if the battery needs to be replaced in 18 months, then you spend $50 for a year you DON’T need the battery replaced, bringing the total you end up paying to $200?
ALEX: Also true.
BOSS: And they were originally charging $250 to make you replace the entire device, which means their new plan only denies them $50 profit, on average?
BOSS: Pure genius.