Madness
Apple have more than US$100 billion stashed off shore from the USA, they have just realised a significant tax saving in excess of US$7 Billion by issuing debt bonds at low coupon rates to repurchase shares and push the stock price up - a price that at over US$400 per share is way over valued.
Now, still having their cash in the bank, repurchasing shares via a debt issue and having as tax deductible all interest paid on said bonds, Apple decide in their wisdom to save a miserly US$1 billion per annum by changing their AppleCare programme - a system that has earned them great respect and loyalty from many users.
As an example, I took my daughters iPod Touch back to the Apple shop just before the 12 month warranty expired - it had AppleCare applied as well - product was changed instantly due to a battery issue, daughter still has iTouch although out of warranty and has the latest iTouch to boot, again with AppleCare.
I have iMac's located in two country's for business, all with AppleCare, in Hong Kong, since Apple opened its stores, service has been good, prior to this it usually took 1 week for repairs - so was happy bunny.
In the UK, I'm 20 miles from nearest Apple Store, bus trip alone is 1 hour, never mind dragging iMac to the store itself - which I'll do in August once AppleCare nearly expires to get another year out of a 2010 machine hopefully.
Also need to purchase a laptop this year, together with a refurbished iPad 4 - why Apple, because at the end of the day, AppleCare was usually better than what the competition offered.
Given high cost of AppleCare, likelihood that at least once within the three or two years your item will require a repair, present system worked well.
Applecare is already expensive, so if the subscription system works out cheaper for those like me with multiple devices great - if its more expensive though, forget it - basically better off purchasing items from stores that offer two or three year warranties.
Whatever the case, it does seem like profit gouging, which given how profitable Apple are I don't like - by the way, Cook is no Job's and he is a bean counter, so it really does not auger well.