AppleCare+: Single purchase to be phased out, subscription preferred

Regular income pleases the finance department. The AppleCare+ device insurance for iPhone & Co. is therefore gradually eliminating the upfront purchase.

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AppleCare device insurance

AppleCare device insurance: Apple wants to boost its service business.

(Image: Apple)

3 min. read

Apple is apparently planning to sell its popular AppleCare+ device insurance only in the form of a subscription in the longer term. Apple appears to want to remove the option of taking out the offer directly for several years – at least for two sales areas. This is reported by the financial news agency Bloomberg. Implementation is set to begin this week, initially in the USA.

Currently, you can take out the service when you purchase an Apple product and for a certain period afterward, and then pay for it in advance for two to three years. This allows for a lower price. For example, an iPhone 16 Plus costs 199 euros for two years, whereas you would pay 9.99 euros per month (i.e., a total of 239.76 euros). If you also want to insure your device against theft and loss, you will pay €13.49 per month (€323.76 in total), but only €269 for two years in advance.

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AppleCare+ covers an unlimited number of repairs in the event of unintentional damage, but there is an excess (29 to 99 euros). With the add-on against theft and loss, one is allowed every twelve months, then you pay an additional 129 euros per lost/stolen iPhone. As Bloomberg's Mark Gurman reports, the subscription will be compulsory in Apple stores and on the devices. However, it should be possible to save a little: an annual subscription will be possible in both areas. Confusingly, however, the Apple Online Store will initially allow users to take out a subscription for two or (depending on the device) three years.

The idea behind the changeover seems to be to convert more users into subscribers – and thus further boost Apple's service business, which recently posted record sales again. Although Apple gets money into its coffers more quickly with upfront payments, subscriptions promise regular revenue. Apple also seems to be counting on users taking out a low-cost monthly subscription for AppleCare+ rather than having to put a chunk of money on the table straight away.

AppleCare+ is purely device insurance; the two-year warranty on product defects that applies in the EU remains in place. It is therefore possible that Apple will complete a necessary repair even without AppleCare+. The service is sold as an all-round carefree package.

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.