Apple has quietly increased the price of its monthly AppleCare+ subscription for iPhones in the United States by 50 cents across all models. The price adjustment applies to both the standard AppleCare+ plan and the AppleCare+ with Theft and Loss option, but does not affect the one-time, upfront two-year plans—at least for now.
For instance, AppleCare+ for the iPhone 16 Pro now costs $10.49 per month, up from $9.99. Similarly, the Theft and Loss plan has seen a slight increase, though specific pricing details vary depending on the model. This change does not impact AppleCare+ pricing for iPads, Macs, or Apple Watches.
More significantly, Apple is eliminating the ability to purchase an upfront two-year AppleCare+ plan in its physical retail stores. Customers buying iPhones in-store will now only have the option to subscribe to AppleCare+ on a monthly or annual basis. This shift ensures continuous revenue for Apple as more customers transition to recurring payments rather than fixed-term coverage. However, those who still prefer the two-year upfront plan can purchase it online from Apple’s website.
In recent times, the tech giant has increasingly focused on maximizing recurring revenue through services like AppleCare+, Apple TV+, and iCloud storage. In its last earnings report, Apple disclosed that its services division reached an all-time revenue high, reinforcing its reliance on this segment for sustained financial growth.
For consumers, this means that opting for the monthly plan will cost more in the long run. A standard two-year AppleCare+ plan for the iPhone 16 Pro costs $199 when purchased upfront, whereas paying $10.49 per month over 24 months amounts to $251.76—a difference of over $50. While this price hike may seem minor, it adds up over time, especially for users who keep AppleCare+ coverage beyond the standard two-year period.
The removal of the upfront purchase option in retail stores is a strategic move by Apple to increase customer retention within its subscription ecosystem. By making AppleCare+ a recurring expense rather than a one-time purchase, the company ensures that more users remain continuously covered, reducing the likelihood of coverage lapses while increasing long-term profitability.
For now, AppleCare+ two-year plans remain available online, but with Apple’s growing emphasis on subscription-based services, it’s uncertain how long that option will remain. Apple’s recent moves suggest a future where customers will have little choice but to subscribe to ongoing plans, much like other digital services that have embraced the subscription model.