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Starting next week, Apple's retail stores will no longer offer AppleCare+ plans as a one-time purchase, according to Bloomberg's Mark Gurman.

applecare-apple-care-banner.jpg

Instead, he said the stores will only offer AppleCare+ as a subscription. For example, AppleCare+ for the iPhone 16 Pro Max costs $9.99 per month, or $199 upfront for two years. The latter option would no longer be available at Apple's stores.

Fortunately, Gurman said AppleCare+ will remain available as a one-time purchase on Apple's online store, at least for now.

It is unclear if this policy change is limited to the U.S. or will apply worldwide.

Apple likely profits more by offering AppleCare+ as a monthly or annual subscription, which helps to boost the company's services revenue.

Article Link: AppleCare+ Policy Change Coming to Apple Stores
 
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Apple likely profits more by offering AppleCare+ as a monthly or annual subscription, which helps to boost the company's services revenue.
Taking away the $199 one-time payment option forces people to the $9.99/mo option. How many people forget to cancel subscriptions they no longer want/need/use? According to one study, 42 percent.

$9.99/mo is also a lot easier on peoples wallets than paying $199 up front. That's how monthly payments for pricey iPhones became so popular. If people had to pay $1,000 up front for an iPhone 16 Pro, Apple would see less iPhone sales. Letting people pay $42/mo makes it more attainable.
 
Instead, he said the stores will only offer AppleCare+ as a subscription. For example, AppleCare+ for the iPhone 16 Pro Max costs $9.99 per month, or $199 upfront for two years. The latter option would no longer be available at Apple's stores.

WOW! Damn subscriptions. So, the nudists, those that go caseless, are running the repair costs up? 🤣

Can you buy your device in store then add AC+ from home or do you need to buy it all online?

Good thing the retail employees aren't on commission.

#otterboxdefenderFTW
 
That's a HUGE change. The one time $199 was $40 cheaper than doing it monthly. I also figure that people won't, or will forget to unsubscribe after two years. Someone keeps their phone three years, that's another $120 of revenue.

I hate how seemingly everything in life is becoming a subscription.

Rent, health insurance, auto insurance, etc. are all subscriptions.
 
That's a HUGE change. The one time $199 was $40 cheaper than doing it monthly. I also figure that people won't, or will forget to unsubscribe after two years. Someone keeps their phone three years, that's another $120 of revenue.

I hate how seemingly everything in life is becoming a subscription.
One time Apple Care plans will still be possible on the online store, just not in the physical Apple stores.
 
You always have the option to sign up for AC+ on device for up to 60 days after purchase and the two year plan comes with the option to extend it on a monthly/yearly basis depending on market until the device is considered “vintage” by apple.
 
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Everyone saying "you can still do one time purchase in XYZ locations"

Uh-huh
Sure..

We'll see how long that lasts

"Services" is the growth part of Apple
It will be subscription only, everywhere, at some point -- mark my words
^ This.

Higher services revenue is how Apple was able to achieve a record high gross margin of 46.9 percent during their fiscal Q1 2025. It's also why Apple expects overall gross margins to be slightly higher (47 percent) for fiscal Q2 2025 because they're trying to grow Services revenue.
 
My nephew has my old maxed out iPad Pro 13" (3rd gen) from 2018 that still has monthly AppleCare on it. He breaks it nearly every 3 months so it's worth it to keep paying the monthly fee (he's autistic). Apple probably lost a lot of money on this one... I just got it replaced again but his parents bought him a new Air so now I have it back, so it's brand new or refurbished or whatever they replace them with. I should sell it. I wonder what happens when it goes obsolete, do they cancel the AppleCare+?
 
It’s better monthly as you can extend it beyond the 2 years.
You will get the offer to switch to monthly after the two years are up. I recently did this with my iPad Air 5th and 13 mini after I paid the onetime payment. You will have one month after the initial insurance to be eligible for a renewal. If you let that time lapse, well that's it.
 
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