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

Posted:
in iPhone edited September 2014
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.
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Comments

  • Reply 1 of 37

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

  • Reply 2 of 37
    gwmacgwmac Posts: 1,807member
    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:

  • Reply 3 of 37
    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.
  • Reply 4 of 37
    apple ][apple ][ Posts: 9,233member
    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.

  • Reply 5 of 37
    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? 

  • Reply 6 of 37

    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!

  • Reply 7 of 37
    Don't forget that in Europe Apple has to give TWO years guarantee, by law.
  • Reply 8 of 37
    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.

  • Reply 9 of 37
    gwmacgwmac Posts: 1,807member
    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. 

  • Reply 10 of 37
    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.
  • Reply 11 of 37
    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?

  • Reply 12 of 37
    gwmacgwmac Posts: 1,807member
    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

  • Reply 13 of 37

    Should only be on new Apple Care policies.

  • Reply 14 of 37
    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.

  • Reply 15 of 37
    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.
  • Reply 16 of 37
    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.
  • Reply 17 of 37
    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.

  • Reply 18 of 37
    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

  • Reply 19 of 37
    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.
  • Reply 20 of 37

    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.

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