Mr Forster is confident that he can extend this to other models, making huge savings in inventory costs along the way.

ECONOMIST: General Motors and Fiat

The firms that do this well will discover innovative ways to extend their existing business models and open up new monetization opportunities.

FORBES: The Mobile Revolution Will Extend Your Business Model Faster Than The Web Did

According to Mr. Cook's letter, Apple will extend warranties on repaired models of the iPhone 4 and 4S to one year for any phone repaired after April 1, 2012.

WSJ: Apple CEO Tim Cook Apologizes for China Warranty Policies