Apple has gradually increased the cost of its device protection plans, attributing the changes to ongoing memory chip supply shortages and other factors. Monthly subscriptions for AppleCare+ on Mac and iPad devices now cost an extra half-dollar, and the yearly option is $5 more expensive. Only customers who purchase a new plan will see the higher rates; existing subscribers keep paying what they did before.
Additionally, Apple sells AppleCare One, an alternative bundle covering as many as three gadgets for a flat $19.99 monthly fee. That plan was not changed in this update.
This price adjustment is part of a broader trend of rising costs from the Cupertino company. In July, Apple raised prices across several product lines, including its tablets, laptops, mixed-reality headset, smart speakers, and set-top boxes. Analysts anticipate that the next iPhone generation, set to launch this fall, will also carry a higher price tag, given that iPhones are Apple's primary revenue driver.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
An Apple spokesperson said, "The price increases are due to a worldwide scarcity of memory components and miscellaneous difficulties."
These adjustments follow Apple's recent price hikes on hardware such as iPads, Macs, and the Vision Pro, and come ahead of an expected iPhone price increase in September. For users considering a new Mac or iPad, the updated AppleCare+ fees represent a modest but notable addition to the total cost of ownership, especially when paired with the earlier product price increases. As Apple continues to adjust its pricing strategy, customers may need to factor in higher protection costs when planning their purchases.
Apple has historically adjusted its AppleCare+ premiums only occasionally, making this increase a noteworthy event for frequent upgraders. The memory shortage, which has also caused delays in other consumer electronics, stems from reduced production capacity and rising demand for chips in automotive and AI applications. While the $0.50 monthly hike is small, it compounds over the typical two- or three-year ownership period.
Additionally, the unchanged AppleCare One bundle at $19.99 per month remains a cost-effective option for households with multiple Apple devices, as it covers up to three gadgets for a single fee. Analysts note that Apple's ability to raise prices without losing customers reflects strong brand loyalty and the perceived value of its ecosystem.
The global memory shortage that Apple cites has wider roots in semiconductor supply chain disruptions. Production capacity for memory chips has been constrained by factory closures and increased demand from sectors like automotive and artificial intelligence, which have diverted resources away from consumer electronics. These pressures have forced Apple - and other tech companies - to pass along higher component costs to customers. For Apple users, the price increases on protection plans add to the rising expense of staying within the company's ecosystem, though the modest 50-cent monthly bump is unlikely to deter loyal buyers.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
