AppleCare+ is transitioning to a subscription-only model, discontinuing its fixed-term prepaid options. This shift, reported by Mark Gurman, is already in progress, with third-party retailers no longer offering prepaid plans, and Apple expected to remove them from its website soon.
Previously, AppleCare+ offered both prepaid and subscription-based plans, with the prepaid option often seen as more economical for long-term users. However, Apple is now focusing on the subscription model, which allows for more flexibility in pricing and revenue. By making this change, Apple can adjust subscription rates as needed, responding to market shifts and ensuring consistent revenue.
AppleCare+ provides coverage for hardware defects, failures, and dead pixels, but it doesn’t cover damage caused by handling, like cracked screens. The subscription plan, however, offers expanded protection, including coverage for accidental damage, battery depletion, and 24/7 priority technical support. An additional benefit is theft and loss coverage, offering enhanced security for users’ devices.
AppleCare+ covers a range of Apple products, including iPhones, iPads, Macs, Apple Watches, Apple Vision Pro, and Apple Displays. However, smaller accessories like AirTags, Apple Pencils, and keyboards are not included. The subscription model, introduced in 2021, costs $13.99 per month for devices like the iPhone 16 Pro and iPhone 16 Pro Max, or $139.99 annually. This plan includes theft and loss coverage, making it a comprehensive protection option.
This move to a subscription-only model reflects Apple’s strategy of generating recurring revenue and offering flexible service terms. It is expected that the subscription model will become the primary method for AppleCare+ coverage, simplifying Apple’s service offerings while providing more adaptable protection for users.
