Apple is making a major change to its AppleCare+ service by eliminating prepaid multi-year plans in retail stores. Instead, customers will only have the option to subscribe to the extended warranty on a monthly or annual basis. This shift is expected to take effect by the end of February 2025.
What This Means for Customers
Previously, customers could purchase two- or three-year AppleCare+ plans upfront at the time of their device purchase. However, with this change, new AppleCare+ plans will only be available as ongoing subscriptions. Current prepaid plans will remain valid until their expiration date.
AppleCare+ still includes coverage for accidental damage and free telephone support. Pricing will vary by device, with monthly subscription costs ranging from $2.49 for an Apple Watch to $24.99 for the Apple Vision Pro. Mac and Apple Display plans will continue to be available on an annual basis.
Why Apple Is Making the Change
Industry analysts speculate that Apple’s decision aligns with the growing trend of subscription-based services. By shifting to a subscription model, Apple can offer continuous coverage without requiring customers to make a large upfront payment. The move also ensures long-term revenue and encourages users to keep their coverage active beyond the initial purchase period.
Bloomberg’s Mark Gurman reports that Apple will continue offering the prepaid AppleCare+ plans through its online store, at least for now. However, it is unclear whether Apple will phase them out entirely in the future.
How This Affects Apple Users
Customers who prefer a single upfront payment may need to adjust to the subscription-based model. The new approach provides more flexibility, allowing users to cancel coverage at any time. However, it also means customers will need to manage ongoing payments if they want to maintain their device protection.
Apple’s move to a subscription-only model follows a broader industry shift toward recurring revenue services. While some users may see this as a downside, others may appreciate the ability to maintain coverage indefinitely without worrying about renewal deadlines.
For now, those interested in securing long-term AppleCare+ protection should consider purchasing a prepaid plan before the retail changes take effect later this month.
