Warranty is commonly misunderstood, and manufacturers prefer it that way. For sure, it has little to do with "faith". Warranty is driven by marketing strategy and two costs, the cost-of-goods and overhead.
A small company with a new product has little idea what its true warranty cost will be. Sure, engineering will have data on component failure rates and manufacturing will have initial process quality data, but this is a far cry from forecasting failure at the
system level across a large population of units in the hands of diverse users or understanding the overhead required to service that. If it's smart, that company will make accruals in anticipation of the unknown expense. Large companies have sophisticated systems to model warranty costs, but even those sometimes miss. The rule of thumb is warranty being 2-3% of cost-of-goods, a big deal in electronics hardware with its thin margins. That cost is built into the product price point and margin target.
Manufacturers know that a very high percentage of their warranty cost will be front-loaded in the product lifecycle. This is due to "infant mortality", i.e., electronic component failure usually occurs early. Beyond that failures will primarily derive from manufacturing, and if the manufacturing processes are well engineered (and re-engineered), the number of failures, and costs, will be predictable and small. Warranty cost accruals fund process improvements to drive that cost out of the product.
Smaller companies that offer longer warranty at product release do so for marketing reasons. They have a new entrant up against established competition, or they may be attempting to create a new market niche. It doesn't mean that they actually know what those costs will be (see above); rather than faith it's more like a wing-and-a-prayer. But they urgently need to be perceived as having quality parity. Larger companies with an established brand typically don't see the necessity and just don't do it unless compelled by competition.
Counter-intuitively, some companies will offer longer warranties precisely because they have quality risk; they need the revenue draw to offset anticipated warranty cost. These companies bet that they can manage the customer satisfaction risk until the quality issues can be resolved, which they hope to fund with the incremental revenue generated by the longer warranty. (Needless to say, this is a high risk strategy, but if the company is operating on a shoestring, it may not have any other choice.)
A company will offer more warranty for a mature product as a marketing device to give it some additional competitive life. It costs the company little to nothing, because all development is now a sunk cost, failure rates are known and built into the price/margin model; the product is a cash-cow. This is true of both the Extreme-Q and the Volcano. BTW, this is also why companies like to offer an extended warranty; since the chances are quite slim that the warranty will be exercised, most of those revenues go straight to the bottom line. It's not about faith, it's about gravy.
Electronics companies don't like longer warranties because they incur very expensive overhead. As noted above, most product related failures occur early in the lifecycle and those costs either get engineered out of the product or, if that is not cost effective, the cost is just baked in. But processing warranty claims is very expensive. Later in a product lifecycle the proportion of warranty claims that are valid (a substantial percentage are frivolous) is much less than early in the cycle; companies use all manner of tactics to avoid these costs, starting with simply not offering the longer warranty unless absolutely required.
Whatever VXL's warranty strategy is, it's about to be put to the test. Those 4000 units are going into the general marketplace; that is a step function and the real product launch. Invariably the warranty cost per unit will go up. Any unresolved or unknown flaws will be exposed. Customer service will be stressed. From this we'll see whether there is reason for concern, or not, with a 1 yr warranty.
Jeez, didn't realize how long this was. Well hell, may as well post it anyway . . .