There are reports that Apple will be changing the way we can pay for AppleCare+ – Apple’s extended warranty program that offers support for users that’s in addition to their statutory rights under Australian consumer law. Paying in advance may be disappearing, in favour of monthly or annual subscriptions.
Many technology companies have embraced subscriptions as a way of generating recurring revenue. Their success as a retail strategy relies on two key factors: people are more likely to pay a small amount each month rather than a large upfront fee and there’s a hope (expectation?) that people will keep paying whether they use the service or not. Think of it as the technology industry’s version of gym memberships.
Bloomerg’s Mark Gurman posted on X to say the change could be coming to Apple’s retail stores in the coming weeks.
There’s no word on what will happen with Apple’s online store and whether it will also change in line with the physical stores. Nor do we know if this is a USA only change or of it will apply globally.
It’s worth noting that Australian consumer law offers far stronger protections than many other jurisdictions. In the United States, consumer protections vary significantly state-by-state. But in Australia, consumers are offered significant protections. For example, while a manufacture warranty might say 12 months, under Australian consumer law, a customer can reasonably expect a replacement or repair at no cost if an item is found to be defective and ceases working a reasonable time after purchase.
Here’s what Apple says:
Without limiting consumers rights, Apple will provide its own remedies equivalent to those remedies in the consumer guarantee provisions of the Australian Consumer Law at any time within 24 months of the date of purchase. For the avoidance of doubt, Apple acknowledges that the Australian Consumer Law may provide for remedies beyond 24 months for a number of its products.
For example, if you purchases a new Mac mini today, without AppleCare+, and it failed completely 15 months after purchase, under Australian consumer law, Apple would be excepted to repair or replace the device. This is because there is a reasonable expectation that such a device, that was not used in an unexpected way, would not fail in that time.
Apple provides a handy reference that explains how its warranties and Australian consumer law interact.
Anthony is the founder of Australian Apple News. He is a long-time Apple user and former editor of Australian Macworld. He has contributed to many technology magazines and newspapers as well as appearing regularly on radio and occasionally on TV.