So for those who didn't purchase AppleCare+, what about the first year of warranty? No more free replacements even though the phone is still under warranty?
If the malfunction is due to a defect in the iPhone and you caused no damage to the device, you get it replaced under the warranty. If you drop your phone in a puddle of water you have to spend $199 to get a replacement.
A perfectly fair policy if you ask me.