For the most part, I agree with the recent story in Consumer Reports with respect to extended warranties.  I must say they have saved me thousands of dollars on two laptops.
1.  In B-School, we were required to buy a laptop.  Because the school recommended Dell's and we didn't know better, most of us purchased Dell's with an extended service plan.   Frankly, the Dell was a lemon and the extended service plan came into play on two separate occassions.   On a student budget, I would not have been able to pay for a replacement.
2.  Due to my hatred of Dell, I purchased an Apple to replace the Dell.  Because of the reliability issues with the Dell, I purchased an extended warranty from CompUSA.  Unfortunately, the Apple needed 2 screens and 1 keyboard.   While CompUSA service techs were slow, they did manage to fix the problems eventually.  4-5 years later, the Apple continues to work.
Combined with experiences with work laptops, I believe laptops are inherently unstable and likely to have problems.   If the extended warranty is available at a decent price, it can be a lifesaver.
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