Apple raises iPhone AppleCare+ fees, pushing for monthly and annual plans

California based tech giant Apple has increased the cost of its AppleCare+ subscription plans for all iPhone models in the United States. This price hike affects both the Standard and Theft and Loss plans but does not extend to other Apple devices such as the iPad, Mac, or Apple Watch.

Price hike details

This development comes amid speculation that Apple plans to phase out two and three-year subscription plans in favour of monthly and annual options.

The AppleCare+ Standard plan for the base iPhone 16 model was previously available at $7.99 per month but has now risen to $8.49. Similarly, the iPhone 16 Pro models have seen an increase from $9.99 to $10.49 per month. This represents a modest increase of 50 cents for each tier.

AppleCare+ extends hardware repair coverage from the standard one-year warranty to two years and provides accidental damage protection. It also includes 90 days of complimentary technical support. However, the revision applies only to subscription pricing, with service fees and deductibles remaining unchanged. The starting cost for repairs such as screen or back glass damage continues to be $29.

Shift towards subscription-based model

Apple’s latest move aligns with its broader strategy of prioritising a subscription-based model over one-time purchases. Reports suggest the company is preparing to discontinue up-front AppleCare+ purchase options for iPhones, iPads, Macs, and other devices in its retail stores. At present, customers can buy AppleCare+ alongside a new device or within a limited period after purchase, but this option may soon be removed.

Additionally, Apple is speculated to eliminate the ability to purchase AppleCare+ directly from an iPhone or iPad. While this change is expected to occur at a later stage, customers may soon only be able to secure a longer-term plan when buying from the Apple online store at the time of purchase.