Apple may be making a significant shift to its AppleCare Plus device protection plans. According to renowned Apple analyst Mark Gurman, the tech giant is planning to phase out the option to purchase two- or three-year prepaid plans at physical retail stores and directly on devices.
A notable change coming to AppleCare+ next week: Apple is dropping the 2-3 year pay in advance option at physical retail stores and on devices and will only offer monthly and annual subscriptions. You’ll still be able to get those multi-year plans on the online store.
— Mark Gurman (@markgurman) February 2, 2025
This change, expected to take effect as early as next week, will likely push customers towards monthly or annual subscription models for their device protection.
Apple will still offer the option to purchase multi-year prepaid plans on its online store. However, this move suggests a gradual shift toward a subscription-based model for all AppleCare Plus services.
How Will These AppleCare Plus Changes Impact on Consumers
This change could impact how consumers purchase and manage their AppleCare Plus coverage.
- Reduced Flexibility at Retail Stores: Customers looking for long-term coverage at an Apple Store will need to explore subscription options or purchase online.
- Potential for Higher Costs: While subscription flexibility is a benefit, the long-term cost of a subscription could potentially exceed the upfront cost of a multi-year plan, depending on the device and coverage.
Industry Trend
Apple’s move aligns with the growing trend of subscription services across various industries. Google’s Preferred Care, for example, primarily focuses on monthly subscriptions for its Pixel devices and offers two-year plans only for select Fitbit products.
Looking Ahead
While this change may initially impact consumer behaviour, it’s likely part of Apple’s long-term strategy to transition all AppleCare Plus purchases to a subscription model.
