Shaikh Ibn ul-Uthaymeen rahimahullah said:
“I am cautious/weary of the permissibility of this warranty because in reality it is necessary to go above the price of the phone [in repairs/replacement thorough the warranty]. Next, in this time period [i.e. warranty] will the phone break once, twice,thrice? We do not know. So here the contract wavers between benefiting or losing. The principle in the legislation is: that all the contracts that waver between loss and benefit is from prohibited gambling“.
[Fataawa al-Haram 1418 no. 3 side B ]
Faisal Ibn Abdul Qaadir Ibn Hassan