I think overall people are right that Apple wants to get in the services game but this specific example I don't think is particularly telling. This is something people have been asking for for a long time since the 2 year policy is super awkward for a device you might keep for 5 years.

It will be telling when the monthly cost is lower than the up-front price.

Do they plan to switch or merely offer it as an option? A monthly fee has been available for a while; what's new is that you can go beyond two additional years.

How will the subscription work in relation to credit card company's automatic extension on manufacturer's original warranties is a question. AppleCare is not like an extended warranty from another party, it's direct from Apple. This is a big deal when it comes to credit card warranties.

When someone buys an Apple device with a major credit card they can get the time Apple offered the warranty and then an extra year (2 years for American Express) after the conclusion of the original warranty. With a subscription, I suspect the credit card warranty may become voided or would only extend the original default warranty of the device.

Amex has refunded me money to repair multiple MacBook Pros and an iPhone when the devices failed after AppleCare expired but before the automatic extension had expired.

There are numbers in the article.

So pay up front on the more expensive phone is $149 for 24 months or $7.99 monthly. 24 x $7.99 = $191.76 (42.76 more than up front). But what for the American Express customer, buying the phone. He or she gets the Apple 2 years plus 2 years from Amex so 48 months of coverage for the original $149 vs $383.52 paid via subscription (a $234.52 savings).

Someone keeping the phone the full 60 months it receives support from Apple would pay a total of $479.40 in AppleCare+ premiums. They did get an extra year of support from Apple vs that of the American Express customer paying up front at an effective aggregate cost of (479.4−149)/12 = $27.53 per month in the final year for coverage.

The American Express customer must of course also be saving for the replacement of his or her iPhone in 48 - 60 months. Presuming he or she wants to have the cash ready if the phone dies in month 49, they must be setting aside (999 × 1.08) ÷ 48 = $22.48/month for 48 months and then can coast for the final 12 months maybe earning a little interest before buying the new phone released in September 2024.

Are you sure that the Amex coverage actually stacks with the extended coverage purchased through Apple care in your scenario? (ie does it kick in at month 12 or 24)?

Edit: found a link with some information https://www.uponarriving.com/amex-extended-warranty/#Warrant...

“The question gets a little tricky when you’re talking about Applecare. Amex should provide you with two additional years of coverage with Applecare since plans are usually 2 to 3 years. The issue is that some have reported they were denied coverage since Applecare was considered secondary coverage”

That is interesting. I've not had my claims denied. I even had it approved by showing that I bought AppleCare 11 months after buying the MacBook Pro in 2011. I attached scanned copies of both receipts with the claim and was approved.

Reading the Amex coverage, it does address this issue https://www.americanexpress.com/content/dam/amex/us/credit-c...

“If the item is also covered by a purchased service contract, the Extended Warranty Period begins at the end of the purchased service contract and extends the original manufacturer’s warranty for a period of time equal to the warranty, up to two (2) additional years.”

So yes I think Amex extends the warranty after (prepaid 2 year) AppleCare expires for a term of one additional year, taking coverage to 36 months.

Amex coverage is now 2 additional years, but yes. It was one year for a long time.

I'm not so sure that's the case, when combined with an extended service contract. The "original warranty" was only one year, and this language seems to say that the length of the extended warranty offered by Amex after the service contract is equal to the length of the original warranty, not the length of the service contract. Although I admit, the language is ambiguous and you might luck out with the right Amex agent (when attempting to make a claim in months 36-48)

Thanks for the info

Yes, I've cashed in on coverage before. It kicks in at the expiration of the original manufacturer's warranty. That is month 13 if no AppleCare is purchased and month 25 if AppleCare was purchased.

In my specific case, they paid me on an iPhone at 23 months (when no AppleCare had been bought) and two MacBook Pros in months ~40 on which AppleCare had been bought.

Interesting. How many years ago did you make the claim on the 40 month loss?

In 2014 and then again in 2017 (on the system that replaced my 2014 one).

Naively I thought it was apple watch + healthcare::