Apple has increased the prices of its AppleCare Plus subscription plans for iPhones by 50 cents, according to a report by MacRumors. The price hike applies to both standard AppleCare Plus and AppleCare Plus with Theft and Loss monthly plans for the company's current iPhone lineup. For instance, the standard AppleCare Plus for the iPhone 16 will now cost $10.49 per month, up from $9.99.

In addition to the price increase, Apple is also changing the way customers can purchase AppleCare Plus. Previously, US customers could pay for two years of AppleCare Plus for iPhones as a one-time upfront fee in Apple's physical stores or from the AppleCare menu. However, Bloomberg reports that this option will no longer be available. Instead, customers will have to subscribe to a monthly plan or an annual plan, which will include Theft and Loss coverage by default, further increasing the cost.

Notably, Apple still offers fixed two-year plans from its online store, and customers can also purchase AppleCare Plus without Theft and Loss coverage online. This move suggests that Apple is shifting its focus towards recurring revenue streams, a strategy that has been increasingly important to the company in recent years. In its last quarter, Apple reported that its services revenue reached an all-time high.

The change in AppleCare Plus pricing and plans may be seen as a way for the company to boost its services revenue, which has become a critical component of its business. Apple's growing emphasis on services and subscriptions is likely a response to slowing iPhone sales and increasing competition in the smartphone market. By offering more comprehensive coverage options and recurring plans, Apple may be able to generate more revenue from its existing customer base.

The shift towards monthly plans and default Theft and Loss coverage may also have implications for customer behavior and loyalty. With AppleCare Plus now more expensive and tied to recurring payments, customers may be more likely to weigh the costs and benefits of the service more carefully. This could lead to a more discerning customer base, with some users opting for alternative protection plans or skipping coverage altogether.

As Apple continues to evolve its services strategy, it will be important to monitor the impact of these changes on customer behavior and the company's bottom line. With the iPhone market becoming increasingly saturated, Apple's ability to generate revenue from services and subscriptions will be crucial to its long-term success.