Apple is making waves again, but this time it’s not about a shiny new gadget or groundbreaking software update. The company has quietly overhauled its AppleCare+ program, shifting almost entirely to a subscription-based model while simultaneously hiking prices for iPhone users. For those who rely on AppleCare+ as their safety net, these changes are worth paying attention to.
The most immediate change? Monthly subscription costs for AppleCare+ on iPhones have gone up by 50 cents across the board. That might sound like pocket change, but when you’re already shelling out double-digit figures every month for peace of mind, even small increases add up. For example, the standard AppleCare+ plan for the latest iPhone 16 models now sits at $10.49 per month, up from $9.99. And if you opt for the Theft and Loss coverage, you’ll feel that bump too—it’s pricier now, though service fees and deductibles remain unchanged.
But here’s where things get interesting: Apple isn’t just raising prices; it’s fundamentally altering how customers access AppleCare+. Gone are the days of walking into an Apple Store and purchasing a prepaid multi-year plan. Instead, Apple is pushing everyone toward subscriptions. If you buy your device online through Apple’s website, you can still snag a one-time, two- or three-year prepaid plan—for now. But in retail stores, the only option left is a recurring subscription that renews automatically.
This move aligns perfectly with Apple’s broader strategy of generating steady, predictable revenue streams. By locking customers into ongoing payments, Apple ensures a continuous flow of cash long after the initial sale. It’s clever business, sure, but it also raises questions about flexibility for consumers. What happens if someone decides they no longer need AppleCare+ halfway through their subscription? Or worse, what if they forget to cancel and end up paying for months without realizing it?
Not all devices are treated equally under the new system, either. Products like AirPods, HomePods, and Apple TVs don’t yet offer a subscription option. For these gadgets, you’ll still be able to purchase extended coverage in lump sums. Meanwhile, smaller accessories like AirTags, keyboards, and the Apple Pencil remain ineligible for AppleCare+ altogether.
For context, AppleCare+ differs significantly from the basic AppleCare warranty that comes free with every new product. Basic AppleCare covers manufacturer defects for one year and includes 90 days of complimentary tech support. But once that expires, you’re on your own unless you’ve upgraded to AppleCare+. The premium version adds accidental damage protection, battery replacement coverage, and round-the-clock priority access to technical support. Theft and Loss coverage, available for an extra fee, sweetens the deal further for iPhone owners.
Apple introduced the indefinite-length AppleCare+ subscription back in 2021, framing it as a flexible alternative to traditional plans. At the time, it seemed like a win-win: customers could keep their devices covered indefinitely, and Apple secured recurring revenue. Fast forward to today, and the shift feels less like a choice and more like a mandate. With prepaid options disappearing from retail locations, Apple is nudging users toward subscriptions whether they like it or not.
So, what should you do? If you’re planning to buy a new iPhone soon and prefer the simplicity of a one-time payment, act quickly and shop online. Otherwise, prepare for the reality of monthly charges that will stick around as long as you let them. Either way, Apple has made it clear: staying protected comes at a premium.
FAQs:
Q1: What is AppleCare+?
A1: AppleCare+ is an extended warranty service provided by Apple that offers enhanced protection for devices, including accidental damage coverage and priority tech support.
Q2: How much does AppleCare+ cost for iPhones now?
A2: As of the latest update, AppleCare+ for iPhones costs $10.49 per month for standard plans, reflecting a 50-cent increase from the previous rate.
Q3: Can I still buy prepaid AppleCare+ plans?
A3: Prepaid AppleCare+ plans are no longer available in Apple retail stores but can still be purchased online for select devices, including iPhones.
Q4: Who is Mark Gurman?
A4: Mark Gurman is a prominent tech journalist at Bloomberg who frequently reports on Apple-related developments, including product launches and policy changes.
Q5: Why did Apple switch to a subscription model for AppleCcare+?
A5: Apple’s shift to a subscription model allows the company to generate consistent, recurring revenue while offering customers flexible, long-term coverage options.
