Apple is making a big push for recurring revenue by doubling down on its subscription services, as seen in recent changes to its AppleCare offerings and the introduction of the “Invites” app for iCloud+ subscribers.
AppleCare: A Shift to Subscription-Only Model
Apple is simplifying its AppleCare plans, but this comes with a price. Previously, Apple offered two tiers of coverage: a standard plan for hardware issues like cracked screens and battery problems, and a premium plan that covered theft and loss.
However, Apple is eliminating the basic plan altogether, leaving only the more expensive theft and loss coverage, with a small price increase of 50 cents per month.
Along with the price hike, Apple is switching to a subscription model for AppleCare. Instead of the option to pay for two years of coverage upfront, customers will now be required to pay on a monthly or annual basis.
This move locks users into recurring payments, signaling Apple’s focus on stable and predictable revenue streams.
iCloud+ and the New “Invites” App
In addition to changes in AppleCare, Apple is adding new features to its iCloud+ service. The newly launched “Invites” app, which simplifies event planning, is a clear attempt to attract more iCloud+ subscribers.
The app allows users to organize events like birthday parties and other special occasions while integrating with their photo library and music collection for a personalized experience.
While non-subscribers can still download the app, its true value lies in being bundled exclusively with iCloud+, offering more incentive for users to sign up for a paid plan.
These changes reflect Apple’s broader strategy to create an interconnected ecosystem of services and further strengthen its subscription offerings.
Whether these moves will continue in the future remains to be seen, but they certainly point to a future where subscriptions play a central role in Apple’s business.