With all the announcements at its big event yesterday,Watch Genie in a String Bikini (2006) Apple kept one bit of news under wraps, quietly rolling out a new feature.
Apple’s extended warranty plan, AppleCare+, will now be offered with a subscription-based payment plan option to customers. This new monthly AppleCare+ plan is currently only offered for the iPhone, iPad, and Apple Watch. The new AppleCare+ payment option was first noticed by 9to5Mac.
The company will continue to offer the upfront 2-year plan alongside the subscription model. However, the monthly subscription offers users the ability to continue paying indefinitely, extending Apple’s warranty until the consumer chooses to stop paying the recurring fee.
Apple charges $149 for the base 2-year AppleCare+ plan for an iPhone XR. It now additionally offers a “pay monthly until cancelled” option for $7.99 per month. The $79 2-year AppleCare+ plan for the Apple Watch offers a similar monthly plan for $3.99 per month.
SEE ALSO: What’s the best iPhone deal now that iPhone 11 is here?Current AppleCare+ customers are covered for up to 2 incidents of accidental coverage over the 2-year plan. The new monthly option covers those same 2 incidents for every 24 months a user is subscribed to the plan.
Apple previously offered monthly installment plans for AppleCare+ coverage, but did not allow users to continue paying to extend AppleCare+ beyond the length of the 2-year plan.
With the new monthly subscription model, it appears users will end up paying a bit more over 24 months than if they opted for the 2-year plan outright. However, being that customers must sign up for AppleCare+ coverage within 60 days of purchasing a new Apple device, customers who opt for the 2-year plan up front won’t be able to switch to the monthly plan after the initial 24 months are up. If you already have AppleCare+ before the roll out of this new plan, unfortunately, you won’t be able to subscribe to the monthly payment option.
With the AppleCare+ monthly plan’s relatively cheap pricing, it’s easy to see how this “set it and forget it” subscription could cause problems for Apple customers down the road. One can imagine users forgetting about their monthly plan for an old, since-replaced iPhone and forgetting to cancel the AppleCare+ subscription. It’s unclear how Apple intends to let users manage the subscription and cancellations.
Last year, Apple rolled out a new extended warranty product, AppleCare+ with Theft and Loss. This more expensive plan offered coverage for instances of theft and loss which aren’t covered under the base AppleCare+ plan. It doesn’t appear that Apple is offering monthly subscription options for this plan as well.
Mashable has reached out to Apple for more information about the new AppleCare+ monthly subscription plan. We will update this post when we hear back.
Topics Apple Apple Watch iPad iPhone
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