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Businesses Iphone Apple Technology

Apple Just Turned Its Extended Warranty For iPhone, iPad, and Apple Watch Into a Monthly Subscription (theverge.com) 70

An anonymous reader shares a report: Apple's extended warranty, AppleCare+, has always covered iOS and Apple Watch devices for a total of two years. But after its iPhone 11 event, the company quietly introduced a new option that basically turns AppleCare+ into a full-on monthly subscription, allowing consumers to continue paying beyond the regular coverage period and keep going for as long as Apple is able to service their product. The change was spotted by 9to5Mac. Apple had already offered monthly installments for AppleCare+, but that was only an alternative to paying a lump sum for the same two-year coverage total. And it seems Apple has now eliminated this payment option. With the new approach, Apple uses the pretty clear wording of "pay monthly until canceled." As 9to5Mac notes, you'd end up paying more through the monthly option for the standard 24 months of coverage than if you just opted to buy that length of time outright. The new subscription is really best for people who plan to hold on to their gadgets for several years.
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Apple Just Turned Its Extended Warranty For iPhone, iPad, and Apple Watch Into a Monthly Subscription

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  • The Apple Watch I ordered had just a straight one-time AppleCare payment, no monthly option.

    I like the idea you can expand paying for that if you like, since it would mean indefinite free screen replacements for people who choose to keep phones longer than two years...

    Don't forget, it's still an option to buy this service at all.

    • But will Apple stop charging that monthly fee after your product reaches end of life. For every product you are going to reach a point where the vendor will not support the product anymore

      I am trying to reduce the number of monthly payments, not get more. The problem isn't that they offer monthly services, but stop offering the bulk purchase option.

         

      • That's why I never use a device that relies on a particular outside service to work. My step tracker is a Chinese brand, which continues to work even if I don't use the company's fitness "app". As for my smartphone, I'm basically using it as a tablet replacement, with apps installed from a non-Google source, F-Droid. My TV might be an exception, but then there are at least four other different broadcast networks to choose from, if one goes out of business or merges with another. With Apple, it's either jai
      • by Guspaz ( 556486 )

        For Monthly Plans, your Plan Term is one (1) month. Your Plan will automatically renew each month unless cancelled as set forth in the “Cancellation” Section 9 below, including in the event that Apple is no longer able to service your Covered Equipment due to the unavailability of service parts, in which case Apple will provide you with thirty (30) days’ prior written notice of cancellation, or as otherwise required by law.

      • But will Apple stop charging that monthly fee after your product reaches end of life.

        All I am saying with my post is that for my watch, there was no monthly option, just a one-time Applecare payment.

        So no, after the two years is up Apple will not be charging my anything. Not sure if there's a way to add on monthly payments to the plan.

      • by AmiMoJo ( 196126 )

        How does it work if you stop paying?

        Say you smash your screen and don't have AppleCare. Can you just subscribe, wait a few weeks and then get your screen fixed? Or do you need to have a continual subscription?

    • by AmiMoJo ( 196126 )

      It's never worth paying for these manufacturer/seller supplied extended warranties.

      The cheapest insurance option is to include devices like phones on your home contents insurance.

      • It's never worth paying for these manufacturer/seller supplied extended warranties.

        The cheapest insurance option is to include devices like phones on your home contents insurance.

        So initiate an insurance claim and pay a $500 deductible to cover a broken phone screen?

        Don't get me wrong, I don't like the extended coverage option either.

        My insurance is a decent phone case.

        • My insurance is a decent phone case.

          My insurance plan is to spend ~$200 on a phone instead of $1000 or more. Throw on a good case and you're good to go.

          I can break 3 or 4 of them and still come in well under the cost of an iPhone. The fact is that you can get a pretty damn good phone these days for ~$200.

        • by AmiMoJo ( 196126 )

          Obviously you need to get an insurance plan that doesn't have a $500 deductible on it. In the UK most have some special provision for things like phones.

    • by JustAnotherOldGuy ( 4145623 ) on Wednesday September 11, 2019 @11:29AM (#59181388) Journal

      since it would mean indefinite free screen replacements

      I don't think that word means what you think it means.

      -

      for people who choose to keep phones longer than two years...

      You mean for people who choose to keep paying a monthly fee, which is where they'll recoup the cost of your screen replacement. If you think they won't make money on this, you don't know Apple.

      -

      Don't forget, it's still an option to buy this service at all.

      And if you don't pay you won't get those "free" screen replacements. No offense, Kendall, but did you hit your head this morning? You usually make more sense than this.

      • since it would mean indefinite free screen replacements

        I don't think that word means what you think it means.

        -

        for people who choose to keep phones longer than two years...

        You mean for people who choose to keep paying a monthly fee, which is where they'll recoup the cost of your screen replacement. If you think they won't make money on this, you don't know Apple.

        -

        Don't forget, it's still an option to buy this service at all.

        And if you don't pay you won't get those "free" screen replacements. No offense, Kendall, but did you hit your head this morning? You usually make more sense than this.

        Apple probably does make a little money over the top on this, just like with the one-time payment plan; but IIRC, AppleCare is actually underwritten by another Company. They are the ones that are making the money (and probably the ones who came up with the plan).

        But this puts AppleCare more in line with other types of insurance, rather than in with the "Extended Warranty" crowd.

        For example, both my car and my home insurance have the option to pay every 6 months (or every year on my home ins.), or to pay mon

      • by Guspaz ( 556486 )

        If I compare all the money I've spent on AppleCare over the years versus what it would have cost to replace hardware when it failed, AppleCare has saved me money in the long term.

    • The Apple Watch I ordered had just a straight one-time AppleCare payment, no monthly option.

      I like the idea you can expand paying for that if you like, since it would mean indefinite free screen replacements for people who choose to keep phones longer than two years...

      Don't forget, it's still an option to buy this service at all.

      I appears to only be for iPhones. That's why you didn't see the option for your Apple Watch:

      https://www.cnet.com/news/appl... [cnet.com]

      • I appears to only be for iPhones.

        The article you linked to was not exactly clear, but implied it covered all new gear (and specifically mentioned watches).

        The title for the article on Slashdot said it covered watches...

        I'm not saying you are wrong, but so far these two sources claim it applies to the Watch as well. Maybe that change is upcoming. Or maybe it's because I bought through the Apple Store app it didn't have that option.

    • by tlhIngan ( 30335 )

      Don't forget, it's still an option to buy this service at all.

      Unless you live in Europe or Australia or other places with consumer protection laws that mandate the warranty be 2-3 years by default.

      In which case the price of the extended warranty is built into the price of the item.

      What happens now is basically the price of the item now includes 24-36 months of monthly warranty subscription built in. I guess Apple will offer an extension service once the pre-paid warranty runs out.

      • by EvilSS ( 557649 )
        But those don't cover accidental damage or theft, and that's what Apple Care+ is. What you are talking about is the regular AppleCare extended warranty.
  • I "discovered" this a long time ago on Best Buy. For instance, the Apple Care for an iPad Air is $3.49 monthly or $69 for two years.
    • by Guspaz ( 556486 )

      It's not the same thing. That was $3.49 monthly for 24 months as a financing option instead of paying it up-front. This is an ongoing unbounded monthly subscription, which could allow you to keep an Apple product under warranty for longer than two years, which is currently impossible.

  • You would think that if this was a good deal for consumers they would make more noise about it.

    I'm too lazy to read the article.

    • I'm too lazy to read the article.

      You didn't miss anything. It was about some electronical gadget or whatever.

  • by Merk42 ( 1906718 ) on Wednesday September 11, 2019 @10:46AM (#59181196)
    I've got the solution! Convince them to continuously pay monthly for the phone they already have!
    • by sinij ( 911942 )
      Why not? If this fee isn't mandatory to receive security updates, and if this fee will actually includes repairs to battery and screens, then it might be a good deal.

      Look at IPhone 11. Other than a slightly better camera, is there a reason to upgrade over IPhone 8?
      • Why not? If this fee isn't mandatory to receive security updates, and if this fee will actually includes repairs to battery and screens, then it might be a good deal.

        Look at IPhone 11. Other than a slightly better camera, is there a reason to upgrade over IPhone 8?

        You still have to pay a deductible when exercising apple care benefits, screens are $29, everything else is $99. Watch deductibles are higher.

        This is of course on top of the lump payment/ monthly subscription.

        • Why not? If this fee isn't mandatory to receive security updates, and if this fee will actually includes repairs to battery and screens, then it might be a good deal.

          Look at IPhone 11. Other than a slightly better camera, is there a reason to upgrade over IPhone 8?

          You still have to pay a deductible when exercising apple care benefits, screens are $29, everything else is $99. Watch deductibles are higher.

          This is of course on top of the lump payment/ monthly subscription.

          But since even shitty third-party iPhone screen repairs are often well over $100, and most electronic repairs require a "main logic board" replacement ($350-$700 ish), I'd say those "Deductibles" are well within reason.

          BTW, most Insurance carries a Deductible. Why is Apple "evil" for this?

        • by Guspaz ( 556486 )

          Apple only charges deductibles on user-caused damage. If you break your screen (beyond the number of free no-questions-asked screen replacements covered by AppleCare+) then they will charge you a deductible. If your battery swells up and shatters your screen, they will not charge you anything.

          • Apple only charges deductibles on user-caused damage. If you break your screen (beyond the number of free no-questions-asked screen replacements covered by AppleCare+) then they will charge you a deductible. If your battery swells up and shatters your screen, they will not charge you anything.

            Good point!

        • You still have to pay a deductible when exercising apple care benefits, screens are $29, everything else is $99.

          Mostly I've seen those fees waved unless you are really abusive on equipment. Pretty much every first screen replacement will be free.

  • to get looked after by the cult.
  • Additionally, unless applicable local law provides otherwise, Apple may cancel this Plan for fraud or material misrepresentation, or if service parts for the Covered Equipment are not available, upon thirty (30) days’ prior written notice. If local law permits and Apple cancels this Plan for the unavailability of service parts, you will receive a pro-rata refund for the Plan’s unexpired Term.

    I don't know for how long they keep parts, but it can possibly mean that they can cancel your plan early. The monthly plan is also quite expensive, compared to the 2 year plan, so even if they keep your phone alive for 5 years (a reasonable guess), at the end, you will end up paying almost the secondhand value of your phone each year.

    It may be a good plan if you want *less* than two years though.

    • I don't know for how long they keep parts, but it can possibly mean that they can cancel your plan early.

      Of course they can, they can do whatever they want and they don't have to give a shit what their victims, errr, I mean "users" want. They could cancel it tomorrow and that would be that.

      Apple kinda-sorta used to care about their customers, but these days it's basically, "Fuck you, buy this!"

      I mean, who doesn't want to shell out $999 for a monitor stand?

    • Additionally, unless applicable local law provides otherwise, Apple may cancel this Plan for fraud or material misrepresentation, or if service parts for the Covered Equipment are not available, upon thirty (30) days’ prior written notice. If local law permits and Apple cancels this Plan for the unavailability of service parts, you will receive a pro-rata refund for the Plan’s unexpired Term.

      I don't know for how long they keep parts, but it can possibly mean that they can cancel your plan early. The monthly plan is also quite expensive, compared to the 2 year plan, so even if they keep your phone alive for 5 years (a reasonable guess), at the end, you will end up paying almost the secondhand value of your phone each year.

      It may be a good plan if you want *less* than two years though.

      In the U.S. market, Apple generally keeps parts for 5 years or more.

      So let's say you are an unlucky iPhone user, and, at year 4, your battery decides to swell up and split, cracking the display and spewing caustic battery goo all over the mainboard.

      Now what? Normal AppleCare is no help. It has been 4 years. Even if you go for a new iPhone, the trade-in value of your old one is ZE-RO.

      But, if you have been paying $8 per month for Subscription-based AppleCare, you get a NEW iPHONE (they won't be able to repair

  • Instead of having $8/month for AppleCare+ for your phone, another $10/month for iCloud, $5/month for Apple TV....make an Apple Prime bundle that covers all of these things in one shot for $20 a month.

    Half of what people want out of an Apple product is that sense of a premium experience. If Amazon can have music, video streaming, photo storage, and next day delivery for one fee, I can't imagine it's somehow impossible for such a bundle to exist.

    It sounds like Tim Cook thought this video [youtube.com] was an instruction ma

  • So you have the 2 year warranty, but you can extend it by paying - like an insurance. For most devices you don't have that option, if your gadget breaks down a week after warranty, you're on your own.
  • $250 when on sale, $30 for the accident protection for like 18 months. So $280.

    I shattered my screen once already and have two more replacements pending.

    And 3+ years from now when i need a new phone, $280 again.

    I still don't understand why people waste money on Apple phones.

    • by Guspaz ( 556486 )

      Why spend $280 on a Moto G7 when you can get a budget smartphone for half that?

      The iPhone might be more expensive than the G7, but the iPhone will have a larger and much higher resolution and higher quality display, a CPU/GPU that is multiple times faster, much better cameras, more RAM (depending on model), etc.

      Not everybody needs that. If you don't need that, and the $280 phone works for you, great! But some people do want or need a more powerful/capable device, and that's why they "waste" the money on the

  • The new subscription is really best for people who plan to hold on to their gadgets for several years.

    Wait, there are people who plan on buying something only to sell it back or replace it every few years? That seems foreign to me. Usually when I buy a gadget I do a little research, see how it compares, what I can use it for, then I make a purchase with the intention that I will most likely throw/give it away at some point because it is no longer functional (or a similar model is so cheap you could pick one up on e-bay for less than a cup of coffee).

    But to base my purchase of something on the assumptio

  • by nospam007 ( 722110 ) * on Wednesday September 11, 2019 @01:32PM (#59181990)

    "Apple's extended warranty, AppleCare+, has always covered iOS and Apple Watch devices for a total of two years. "

    Here in the EU that's the mandatory period for everything, even for a toaster.

    • In New Zealand we have "Durable", "Free from defect" and other language in our "Consumer Guarantees Act".
      This means depending on what you bought and the quality of what you bought the warranty is MUCH longer than the manufacturers, a Sony TV could be as long as 7+ years, whiteware 10+ years, etc. Parts must be available for a fair and reasonable cost. Expenses can be claimed too
      I got a new motherboard for my sons MacBook when it was 4 years old.

      There is no contracting your way out of the CGA. Your firs
      • Similar laws apply in Australia. Thing that worries me is both your and my favorite consumer protections are likely to come under attack by the likes of Apple, they already do their damned best to ignore them when they can.
        • Apples web site says it understands its obligations under the CGA.
          But I would hazard a guess and say that the CGA is like our Nuke free stance...there is not a government that is stupid enough to change it.
          As a small country, I think our representatives are more accountable, we actually by and large have "by the people, for the people"
    • by EvilSS ( 557649 )
      Unless they changed it this week, that quote is wrong. It's mixing up AppleCare (warranty) with AppleCare+ (warranty+accidental damage+loss/theft on some devices)
      • by EvilSS ( 557649 )
        eh, re-read it in context. Quote is right, nospam007 is mixing the two warranties up.
    • by antdude ( 79039 )

      Frakkin Cylons! :P

    • by AmiMoJo ( 196126 )

      It's even better than that in some countries. For example in the UK goods must last a "reasonable length of time", which for electronics is usually seen as about 6 years.

      I see that AppleCare is £25 excess for screen damage and £75 for all other damage. If you smash your screen a lot it might be worth it, assuming you can get unlimited £25 replacements. But really if you are smashing your screen a lot then why not buy a decent case?

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