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New AppleCare Covers Up to Three Devices
Bloomberg Technology· 2025-07-23 18:19
Subscription Service Overview - Apple introduces a new $20 per month subscription plan covering three devices with protection against spills, accidents, and cracked screens, including 24/7 IT support [1] - The new plan bundles coverage for multiple devices like iPhones, Apple Watches, and Vision Pro, potentially offering savings compared to individual device plans [2] - Diagnostic testing is required for older devices to ensure they are in good condition before insurance coverage begins, similar to health insurance [6][7] Strategic Implications for Apple - The subscription model is a significant play for Apple's services division, the second-largest revenue generator behind the iPhone, which includes the App Store, Apple TV Plus, Apple Fitness, and iCloud [4] - Apple aims to monetize its large installed base of 2 billion devices by encouraging more users to subscribe to AppleCare [4] - The subscription service could help offset challenges in the App Store and boost overall subscription sales [5] Consumer Perspective - The loss and theft coverage is particularly appealing to consumers [3] - The $20 per month price point may be attractive to consumers who might not otherwise purchase individual device coverage [5] - Existing device owners may find the bundled plan a convenient way to add coverage to older devices like Apple Watches [7]
