Report: Apple discontinues multi-year plans for AppleCare+

Apple is changing its strategy for AppleCare+. According to a report by Bloomberg journalist Mark Gurman, the option to buy AppleCare+ for two or three years in advance will be abolished. This change primarily affects users who buy their devices in Apple Stores. In the future, AppleCare+ will only be offered as a monthly or annual subscription. Retroactive activation on a device will also no longer be possible.

AppleCare+ offers extended protection for Apple devices. In addition to an extended warranty, it also includes coverage against accidental damage. Until now, customers could choose whether to pay for AppleCare+ for several years in advance or opt for a monthly subscription. According to the report, the option of securing longer-term coverage with a one-off payment will no longer be available. This change has not only financial but also practical implications. Users who like to buy their devices in the Apple Store or activate AppleCare+ later will have to adapt to new conditions.

AppleCare+ only available as a subscription

Mark Gurman According to reports, Apple will be removing the option to purchase a two- or three-year AppleCare+ plan in Apple Stores and directly on the device. This change will take place as early as next week. This means that customers who buy a new Apple device will only be able to choose between a monthly or annual subscription. A one-time payment for several years will no longer be possible - at least not in Apple Stores or directly on the device.

No more subsequent purchases on the device

Previously, Apple users could activate AppleCare+ directly on the device itself after purchasing it. This option is now also no longer available. If you do not add AppleCare+ immediately when purchasing, you will not be able to do so later. This could be problematic for many customers, especially those who decide to take out insurance later or who want to use their device without additional protection at first.

Multi-year plans only available online

As things stand, there is only one exception: customers who buy their device through the Apple Online Store will continue to have the option of paying for AppleCare+ for two or three years in advance. This means that users who insist on a one-time payment should only purchase their devices online. It is unclear whether this option will remain in place in the long term. The changes suggest that Apple could convert all AppleCare+ plans to a subscription model in the medium term.

Why is Apple making this change?

There are several reasons why Apple might switch to a subscription model.

Steady income – Monthly and annual payments generate continuous income while a lump sum payment only brings money once.
Better customer retention – A subscription leads to customers keeping AppleCare+ longer because they don’t have to actively renew or repurchase it.
Unified business strategy – Apple has converted many of its services to subscriptions in recent years, including Apple Music, Apple TV+, iCloud+, and Apple Arcade. A complete transition of AppleCare+ to a subscription model fits into this concept.

AppleCare+ only available as a subscription in the long term?

Anyone who wants to use AppleCare+ will have to get a subscription in the future. Customers who buy their devices in the Apple Store will no longer have the option of choosing a multi-year plan. Instead, they will have to choose between monthly or annual payments. Anyone who still wants a multi-year plan will have to buy their device in the Apple Online Store and add AppleCare+ directly there. In the long term, Apple could switch the entire AppleCare+ system to subscriptions. So anyone who still wants to benefit from the current option should find out in good time and act accordingly. (Image: Apple)