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Apple increases AppleCare+ for iPhone deductible to $79 from $49

post #1 of 38
Thread Starter 
Apple on Tuesday quietly increased the cost of accidental damage coverage for the iPhone, as the company will now charge $79 for up to two incidents through its AppleCare+ protection plan.

AppleCare


AppleCare+ for iPhone still carries the same initial price of $99. But now customers who need coverage for accidental damage will need to pay a $79 service fee, plus applicable tax, to have their device repaired or replaced.

Previously, customers paid $49 for accidental damage coverage. The limit two two incidents per device remains unchanged.

AppleCare+ costs $99 for two years of coverage, providing repair or replacement of the iPhone, its battery, included earphones and accessories, and the included USB cable and power adapter.

Every iPhone comes with 90 days of complimentary telephone support, and one year of warranty coverage. But an AppleCare+ plan extends that support to two years, and adds the ability to protect from accidental damage without having to pay the full unsubsidized price for a replacement iPhone.

The change to AppleCare+ came on Tuesday as Apple announced its new smartphone lineup: the iPhone 5s, which features a Touch ID fingerprint sensor and 64-bit A7 processor, and the iPhone 5c, which features a solid polycarbonate back and comes in a range of new colors. Both devices will be available to purchase with AppleCare+ when they go on sale next Friday, Sept. 20.
post #2 of 38

Maybe take care of your possessions. Keeps the money from getting out of hand.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #3 of 38
Quote:
Originally Posted by Tallest Skil View Post
 

Maybe take care of your possessions. Keeps the money from getting out of hand.

 

That is why they are called accidents. No one want to drop and break their iPhone but it can happen because...welll...you know..they are freaking ACCIDENTS! Thanks for your great insight though. Only you could manage to shift the blame to the consumer when they increase prices by $30.

:no:

post #4 of 38
I wonder how many people smash their old iPhone just before upgrading to a new one.
So they can sell the brand-new, still-in-shrinkwrapped-box replacement on eBay.
Maybe the new $79 replacement cost will help to thwart that.

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post #5 of 38
Quote:
Originally Posted by gwmac View Post
 

 

That is why they are called accidents. No one want to drop and break their iPhone but it can happen because...welll...you know..they are freaking ACCIDENTS! Thanks for your great insight though. Only you could manage to shift the blame to the consumer when they increase prices by $30.

:no:

 

Not all accidents are equal, and certain people are more accident prone than others. These clumsy people should pay extra for their clumsiness. The same goes for dishonest people who attempt to game the system and commit fraud.

post #6 of 38
Quote:
Originally Posted by SockRolid View Post

I wonder how many people smash their old iPhone just before upgrading to a new one.
So they can sell the brand-new, still-in-shrinkwrapped-box replacement on eBay.
Maybe the new $79 replacement cost will help to thwart that.

 

Do they actually give you new or is it a refurb? They don't give it to you in a box... at least none of the ones I've gotten. Maybe if you asked? 

post #7 of 38

Better than AT&T's insurance at $6.95/month + $199 deductible. Assuming you don't need to replace it more than twice.

 

Being one of those clumsy people (pretty sure I was the first person to ever drop an iPhone in a toilet (Replaced by American Express)) I certainly appreciate AppleCare. In fact, I just used my second incident on my 4s. 

 

7 foot drop onto concrete. Phone was in full Ghost Armor that looks good and takes care of small mishaps, but not the big ones.

 

Time for a new phone and two more incidents!


Edited by CustomTB - 9/10/13 at 12:53pm
post #8 of 38
Don't forget that in Europe Apple has to give TWO years guarantee, by law.
post #9 of 38
Originally Posted by gwmac View Post

Only you could manage to shift the blame to the consumer when they increase prices by $30.

 

Yeah, because it's totally not the consumer's fault the price increased. Obviously Apple just felt like making people pay more, or it was the economy, or some other drummed up excuse that has absolutely nothing to do with the increase in the price of insurance for A CONSUMER.

 

Come off it.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #10 of 38
Quote:
Originally Posted by JPDLVMH View Post

Don't forget that in Europe Apple has to give TWO years guarantee, by law.

 

And you guys wonder why the iPhone cost more over there. That and your VAT should clue you in on why the prices are higher. 

post #11 of 38
Does this price increase include current customers or does this take effect from this day forward? I have a scheduled appointment for tomorrow that I made yesterday to have my iPhone 5 screen repaired that I accidentally dropped. I'll be furious if I have to pay $79 dollars when I was told it would be $49 if anything ever happened.
post #12 of 38
Quote:
Originally Posted by JPDLVMH View Post

Don't forget that in Europe Apple has to give TWO years guarantee, by law.

 

I'm guessing that's warranty and not accident?

post #13 of 38
Quote:
Originally Posted by RelliK View Post

Does this price increase include current customers or does this take effect from this day forward? I have a scheduled appointment for tomorrow that I made yesterday to have my iPhone 5 screen repaired that I accidentally dropped. I'll be furious if I have to pay $79 dollars when I was told it would be $49 if anything ever happened.

 

You have a contract when you got your current Applecare. They will not alter the terms on that. It would apply only to new Applecare policies purchased

post #14 of 38

Should only be on new Apple Care policies.

post #15 of 38
Quote:
Originally Posted by gwmac View Post
 

 

You have a contract when you got your current Applecare. They will not alter the terms on that. It would apply only to new Applecare policies purchased

 

Thanks! Shortly after I wrote that I thought I'd take a look at my contract - sure enough it says $49. 

 

Looks like my next warranty on my iDevice will be through a 3rd Party like SquareTrade. $100ish dollars with no deductible if you use the apple genius bar for repair/replacement.

post #16 of 38
This thread is unbelievable. It amazes me how many people rationalize having big corporations extract ever more ridiculous profit margins out of them. Apple's gross margin is, what, 40 percent? It isn't that long ago that margins less than half that were considered huge. All this tells us is that the likes of AT&T didn't feel the need to come off their three figure percentage margins on phone insurance so Apple now figure they can get a much bigger piece of the action. Once again, the consumer loses.
post #17 of 38
Makes Applecare even less appealing now.

I got Applecare on both our phones last time. Had to use it 2x on my wife's one, once due to water damage, and a month later do to a really unfortunate drop. Each time I asked what the replacement cost would have been without the warranty, and was told $199. Standard out of warranty repair.

If they don't up that price, then Applecare seems like a fairly poor value proposition. Initial outlay of $100, plus $80 if you need a repair. So, you gamble $100 upfront for the chance to save $20 on 1 replacement, and have the option of saving an additional $120 on a second replacement if you need it.

I don't think I'll get it this time around, I'll just assume the risk of a $199 replacement.
post #18 of 38
Originally Posted by mikepro View Post
Initial outlay of $100, plus $80 if you need a repair.

 

Yeah? It's better than $599 every time you need a replacement.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #19 of 38
Quote:
Originally Posted by mikepro View Post

Makes Applecare even less appealing now.

I got Applecare on both our phones last time. Had to use it 2x on my wife's one, once due to water damage, and a month later do to a really unfortunate drop. Each time I asked what the replacement cost would have been without the warranty, and was told $199. Standard out of warranty repair.

If they don't up that price, then Applecare seems like a fairly poor value proposition. Initial outlay of $100, plus $80 if you need a repair. So, you gamble $100 upfront for the chance to save $20 on 1 replacement, and have the option of saving an additional $120 on a second replacement if you need it.

I don't think I'll get it this time around, I'll just assume the risk of a $199 replacement.

From their site:

 

Out-of-Warranty Service

If you own an iPhone that is ineligible for warranty service but is eligible for Out-of-Warranty (OOW) Service, Apple will service your iPhone for the Out-of-Warranty Service fee listed below.

iPhone model Out-of-Warranty Service
iPhone 5 $229
iPhone 4S $199
iPhone 4, iPhone 3GS, 
iPhone 3G, Original iPhone
$149
 

Certain damage is ineligible for out-of-warranty service, including catastrophic damage, such as the device separating into multiple pieces, and inoperability caused by unauthorized modifications. However, an iPhone that has failed due to contact with liquid may be eligible for out-of-warranty service.

Apple reserves the right to determine whether or not your iPhone is eligible for Out-of-Warranty service.

Screen repairs on some models are cheaper but I was told they needed to replace the whole phone on the 5

I for one have broken every model I've owned at least once so it has worked for me

post #20 of 38
I just spoke to Applecare, and had an Online Chat also. If you have an Applecare agreement before today. eg. when you purchased your Iphone 5, it is still $49.00. This new price is for all new Applecare agreements.
post #21 of 38

It sounds like Tim Cook is listening to the beancounters at Apple more than customers.  I'm hoping some of these little things aren't signs of a greater disconnect between Apple and their customers and great support.  I hope they aren't beginning to adopt the "nickel & dime the customer to death" approach that most huge business eventually do (ie. telcos, utilities, etc.).  

 

I am also really disappointed in the pricing of the 5c.  $100 less than the equivalent 5s?  Who came up with that!?!?  It should have at most been $449.  I'm not sure where they were on their pricing, but it sounds like beancounters and Wall Street analysts coming up with pricing.  It's a slippery slope.

post #22 of 38
Originally Posted by wlmwallace View Post

I am also really disappointed in the pricing of the 5c.  $100 less than the equivalent 5s?  Who came up with that!?!?

 

Steve Jobs.

 

Still upset about it?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #23 of 38
Quote:
Originally Posted by RelliK View Post
 

Looks like my next warranty on my iDevice will be through a 3rd Party like SquareTrade. $100ish dollars with no deductible if you use the apple genius bar for repair/replacement.

 

Exactly. Right now they're offering a coupon for $10 off, and you don't have to use the coupon soon (meaning you can buy that 5S next month and still pay $89 for a SquareTrade plan). SquareTrade also has the advantage of being eligible for purchased within the first 30 days rather than at the same time. Easier to palette a $300 phone purchase on this paycheck and a $89 warrantee on the next paycheck.

post #24 of 38
Quote:
Originally Posted by djames4242 View Post
 

 

Exactly. Right now they're offering a coupon for $10 off, and you don't have to use the coupon soon (meaning you can buy that 5S next month and still pay $89 for a SquareTrade plan). SquareTrade also has the advantage of being eligible for purchased within the first 30 days rather than at the same time. Easier to palette a $300 phone purchase on this paycheck and a $89 warrantee on the next paycheck.

 

Applecare + has a 30 day window as well, but you have to submit to a phone diagnostic to prove that it in good condition.

post #25 of 38

Not upset - disappointed was the word I used.  Steve Jobs or not - doesn't matter who made the decision, that extra $100 is going to cost them millions of new customers that would be buying into the Apple ecosystem and building Apple's user base for what will really be their cash cow in the future - content, not devices.  I'm not saying pull an Amazon, Sony or a Microsoft with loss leader devices, I'm just saying give your head a shake and look at the future and not your margins for the next 12 months.

post #26 of 38
Phone pricing is a weird beast for apple. With the 5c Priced as it is, half of Wall Street will yell for cheaper phones. If it was $350, they would yell about margins falling.

Apple basically just said " we're on the right track"
post #27 of 38
Originally Posted by wlmwallace View Post
what will really be their cash cow in the future - content, not devices.

 

It hasn't ever been; why would it be now?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #28 of 38
Quote:
Originally Posted by CustomTB View Post
 

 

 They don't give it to you in a box... at least none of the ones I've gotten. 

 

Wow, how many times have you had to use this? You are probably one of the reasons for the increase. 

post #29 of 38
Quote:
Originally Posted by Tallest Skil View Post
 

 

Yeah? It's better than $599 every time you need a replacement.

 

Since when has a replacement been $599?

post #30 of 38
Quote:
Originally Posted by SockRolid View Post

I wonder how many people smash their old iPhone just before upgrading to a new one.
So they can sell the brand-new, still-in-shrinkwrapped-box replacement on eBay.
Maybe the new $79 replacement cost will help to thwart that.

Doesn't work like that. You get a phone. That's all. No box etc.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #31 of 38
Quote:
Originally Posted by JPDLVMH View Post

Don't forget that in Europe Apple has to give TWO years guarantee, by law.

If they sold it to you (it's a sellers guarantee not a manufacturers one), it's only on defect not damage. And in several countries after six months the cx has to prove the defect was present when the item was sold to them, which is rather impossible if you had it for six months while it wasn't functioning and didn't deal with it which is what can happen to many because some defects happen after the fact. From us, from abuse that leaves no obvious damage like leaving it in your car in the sun or smaller drops.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #32 of 38
Quote:
Originally Posted by mikepro View Post

Makes Applecare even less appealing now.

I got Applecare on both our phones last time. Had to use it 2x on my wife's one, once due to water damage, and a month later do to a really unfortunate drop. Each time I asked what the replacement cost would have been without the warranty, and was told $199. Standard out of warranty repair.

Price for a 5 is already higher and the price for a 5C or 5S could be higher still.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #33 of 38
Originally Posted by macxpress0660 View Post

Since when has a replacement been $599?

 

So you're on contract, destroy your phone, and don't have insurance. I guess… what, you magically get one for free?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply
post #34 of 38
Quote:
Originally Posted by Tallest Skil View Post

So you're on contract, destroy your phone, and don't have insurance. I guess… what, you magically get one for free?
Not free but unless you loose it or smash it to pieces you can get it out of warranty repaired (rplaced with a refurb) for a set fee instead of out right buying a new one.
post #35 of 38
Quote:
Originally Posted by Tallest Skil View Post
 

 

So you're on contract, destroy your phone, and don't have insurance. I guess… what, you magically get one for free?

 

No, but Apple doesn't charge you $599 for a replacement either. 

post #36 of 38

my IT guy says att offers $10 month free replacement for up to 3 occurrences 

yes 20 more per year but no deductible

will check it out and confirm

what other options for us??

i usually get applecare but this time maybe not

when my contract is up in early october i will upgrade maybe oct or nov 

I APPLE THEREFORE I AM
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post #37 of 38

what insurance programs are out there

anything for damage as well as if lost or stolen???

any links to a review site

i've heard squaretrade is good but not sure about lost or stolen

 

your thoughts and suggestions are appreciated

 

 

i found this link,   just need to update , but gives which company handles lost, stolen damaged iPhone

 

http://www.gadgetreview.com/2013/02/5-of-the-best-aftermarket-smartphone-insurance-plans.html


Edited by NOFEER - 10/10/13 at 6:39pm
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post #38 of 38

Even more important than this is the fact that Apple has screwed iPhone owners out of their ability to purchase an extended warranty.  Anyone that purchased an iPhone between January, 2014 and July, 2014 bought their phone with the agreement that they could purchase the AppleCare extended warranty anytime within one year of the purchase date.  Now we find out that Apple has dropped the AppleCare warranty and only offer the AppleCarePlus warranty which must be purchased within 60 days of the original iPhone purchase.  The problem is Apple did not notify iPhone owners that might have been waiting to purchase the AppleCare warranty within their first year of the purchase.  Apple did not contact them and give them the opportunity at the time of change to purchase the AppleCarePlus warranty.  Apple does not not now offer those iPhone owners the possibility to purchase the AppleCarePlus warranty.  Apple did not "Grandfather Clause" in the previous iPhone owners who have lost what was their agreement to purchase an AppleCare warranty within one year of purchasing the phone.  Apple broke the agreement it had with iPhone purchasers.  That is unacceptable and iPhone owners should be talking to each other about class action litigation

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