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Not announced in the event but mentioned in the article; this is a very telling indicator as well of Apple's service strategy.. AppleCare+ monthly plans switch

by achow 7y ago

Not announced in the event but mentioned in the article; this is a very telling indicator as well of Apple's service strategy.. AppleCare+ monthly plans switch to subscription model https://9to5mac.com/2019/09/10/applecare-monthly-subscription/ https://9to5mac.com/2019/09/10/applecare-monthly-subscriptio...

Spivak 7y ago
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.
gumby 7y ago
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.
agumonkey 7y ago
Naively I thought it was apple watch + healthcare::
- tibbydudeza 7y ago
  Coming soon ... republicans will disparagingly call it TimCare.
  - Dude2029 7y ago
    Nah, it's opt-in.
  - dang 7y ago
    Please don't post unsubstantive comments to HN, and certainly not partisan flamebait. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
rietta 7y ago
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.
- rietta 7y ago
  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.
  - someguydave 7y ago
    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/#Warranty_less_than_two_years 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”

by achow 7y ago

Spivak 7y ago

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.

gumby 7y ago

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.

agumonkey 7y ago

Naively I thought it was apple watch + healthcare::

tibbydudeza 7y ago
Coming soon ... republicans will disparagingly call it TimCare.
- Dude2029 7y ago
  Nah, it's opt-in.
- dang 7y ago
  Please don't post unsubstantive comments to HN, and certainly not partisan flamebait. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html

rietta 7y ago

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.

rietta 7y ago
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.
- someguydave 7y ago
  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/#Warranty_less_than_two_years 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”