Apple raises monthly AppleCare+ fees and phases out upfront purchase option

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.

AppleCare

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.

About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.