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The 90 day period is for free phone support.
I'm waiting until near the end of the first year to see if its worth buying applecare, you can buy it anytime up to the end of the first year.
 

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My Ipad went belly up last week after 2 months. I could not access Wifi and every time I turned it off when I turned it back on I got a graphic asking me to attach to Itunes. When I did that it said it couldn't read my Ipad and I would have to restore it. I had to restore it 5 times in 3 days. In between it would work for a while. I called Apple and they said "we've never heard of that". I took it back to the Apple store and without any questions they gave me a new one. I am now thinking of the extended warranty.
 
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