After increasing the prices of iPads, Macs, Apple TVs, HomePods and other products, Apple is now attacking its services, more specifically AppleCare+. As spotted by Bloomberg, the company increased the price of AppleCare+ for Mac and iPad by $0.50 per month, or $5 with an annual plan. While it doesn’t sound like much, securing AppleCare+ for a MacBook Air now costs $7.49 per month or $74.99 per year. For an iPad Pro, it costs $11.49/month, or $114.99 per year. As of this writing, it appears the price increase is only focused on new customers, so if anyone is considering getting a MacBook Pro or iPad Air today, adding AppleCare+ costs more.
For current iPad and Mac models that customers own, the price remains unchanged, but Apple may change it in the coming months, nearing the annual renewal process or not. Interestingly, the company hasn’t changed the price of AppleCare One, its recent subscription service that supports up to three Apple products for one unified price. That said, this price increase for new customers could be Apple’s latest move to ensure they opt for a regular, more expensive subscription, rather than paying for standalone AppleCare+.
What is AppleCare One and why it’s now a more attractive upgrade
Launching in 2025, the AppleCare One plan is a “convenient and comprehensive” subscription intended to provide “ultimate peace of mind” to customers when caring for their Apple products. AppleCare One offers the same benefits as an AppleCare+ subscription, including unlimited accidental damage repairs, 24/7 priority support, and battery replacement at no additional cost. It seems Apple wants customers to think going from zero to a $20 monthly subscription is the best deal.
With AppleCare One, you can get protection for up to three devices (iPhone, iPad, and MacBook Pro, for example). So, if a customer has three products, it is cheaper to pay for AppleCare One than for three different protections. Plus, adding new devices, such as an Apple Watch, Apple Vision Pro, or additional iPhones, Macs, and iPads, costs just an additional $5.99/month for each additional device. For devices with theft and loss protection, Apple enables it. For those who don’t, the company continues to offer the usual AppleCare+ protection.
Now, with this slight price increase, the AppleCare One subscription gets slightly better. Additionally, with Apple launching new iPhones later this fall, including the long-rumored iPhone Fold, it’s very likely these products will be more expensive and AppleCare+ could get another price hike, meaning a $19.99/month subscription might not be so bad.
Why does Apple continue to promote subscriptions?
In 2019, Apple held a keynote to introduce new products, but also focused on a new push, announcing that it was going beyond just being a hardware and software provider and starting to offer services. At that time, Apple already offered iCloud and Apple Music subscriptions. Right after, the company launched Apple TV (formerly Apple TV+), Apple Arcade, Apple News+, Apple Fitness+ and even the Apple Card. With so many new offerings, Apple introduced Apple One, a three-tiered bundle that would allow users to combine these services at a more affordable price.
Quarter after quarter, Apple has reported an increase in revenue from its services. It then launched new Apple TV offerings with MLS, MBL and Formula 1. It also partnered with Peacock to offer a package between the two services. Then, with AppleCare, the company saw another opportunity. While she offered protection for all of her products, she thought, “Wouldn’t it be better to offer just one subscription?” Apple thinks so.
So, to make the AppleCare One offering more attractive, Apple is making it more expensive to subscribe to AppleCare+ alone, removing the option to purchase the protection in a single purchase because you have to actively remove or cancel the subscription so it doesn’t automatically renew, while guaranteeing another income for so many customers who will prefer to choose “peace of mind” for a device they may never break.
