No, AppleCare+ is factored into the cost. Its cheaper than AT&T because its 24 months instead of 20 months. Overall it will cost you $129 more over the course of 24 months vs 20 months. AppleCare+ is now $129. With that being said, if you plan to upgrade every 12 months, it would theoretically be $20 or so cheaper a year, plus you have AppleCare+. Its the last 4 months that make up for the difference if you plan on keeping it for the full 2 years.