AppleCare+ Is Changing For The Worse, And It Could Cost You
Apple is making a major change to the way it offers device servicing and theft security coverage with its Apple Care+ bundle for iPhones. The company is going all-in with a subscription model, ending the upfront payment system that used to be sold via its brick-and-mortar stores and the mobile app. "If the customer asks, AppleCare+ with recurring payments is no longer available for iPhone," Apple was quoted as saying by Bloomberg. And it's going to be slightly pricier, as well. MacRumors first reported a price hike of 50 cents for standard AppleCare+.
Notably, Apple Care+ is no longer available as a standalone offering from all the purchase points. Instead, Apple now only sells the pricier tier called AppleCare+ with Theft and Loss for iPhones. Apple Care+ mainly offered unlimited incidents of accidental damage protection. The Theft and Lost package, on the other hand, also covers two incidents of theft or loss coverage per year, in addition to the standard set of Apple Care+ benefits.
Apple is still offering the two-year upfront plan, but only from its online store. The monthly plan covering the iPhone 16 Pro series now starts at $13.99, or $139.99 annually. Earlier, a two-year plan was also available at $269, which translates to a net price hike of $20, or $10 per year, on the Apple Care+ coverage. In a nutshell, theft and loss coverage is now mandatory if you purchase an Apple Care+ plan for your iPhone. For example, if you go with the monthly plan on the iPhone 16 Pro for a period of two years, it will cost you $335.76, or $279.98 if paid annually. The standard 2-year Apple Care+ plan for the same phone only costs $199 without theft and loss coverage.
What else is changing for shoppers?
Apple's website now more prominently details the cost of fixing iPhone screens and other hardware damage, which is a step in the right direction. As far as pricing for the older model goes, it comes to $12.99 per month for the iPhone 16 Plus (and corresponding iPhone 15 and 14 Plus models), whereas the annual subscription tier will set you back by $129.99 per phone. The same coverage is available at $11.99 per month for the standard iPhone 14 and its direct successors, going up to $119.99 on a yearly basis.
Notably, Apple has also ended the one-time purchase plans for Mac hardware as well. The website currently lists only the monthly and annual coverage plans for the Mac portfolio. But not too long ago, the company was also selling a 3-year upfront Apple Care+ coverage plan for its computing machines. The pricing of the annual subscription plan hasn't changed for most Mac hardware, except for the MacBook Air M2, which has dropped from $79.99 to $64.99 per year.
Do keep in mind that you need to pay a deductible worth $149 for each such incident for theft and loss coverage on iPhones. "AppleCare agents have been instructed to tell customers that the change is designed to lower upfront costs and prevent future gaps in coverage," reports Bloomberg. It is unclear whether Apple is eyeing a phased rollout starting with the U.S., or if it is focusing only on certain markets with the subscription-aligned changes. In other news, Apple has also launched a new Invites app that lets you send custom event invites with a cool social sharing twist to it.