Apple Care and SquareTrade cover different things. For the physical phone,
I think SquareTrade is vastly superior; it covers a lot more easily
foreseeable eventualities than Apple Care. However, Apple Care covers
software issues and SquareTrade doesn't.
Here's an independent comparison:
http://dealnews.com/features/War-of-the-Warranties-Apple-Care-vs.-Square-Trade/541964.html
Anne
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