Apple Stock To Get Boost $20 At A Time?: Inside Tech Giant's Latest Plan To Monetize User Base

Tech giant Apple Inc. AAPL may have found a new way to monetize its expanding and record-breaking base of users and installed devices.

What Happened: Apple announced the launch of AppleCare One on Wednesday, a new way for customers to protect their Apple products, including older devices and new yet-to-be-released foldable iPhones.

The AppleCare One plan costs $19.99 per month and includes protection for three products on one plan. Additional Apple products can be added for $5.99 per month for each device.

The service goes live on Thursday, July 24, and will enable customers to protect their iPhone, iPad, Mac, Apple Watch, and other devices.

"At Apple, we're focused on creating and delivering exceptional experiences," Apple's vice president of Worldwide Product Marketing Bob Borchers said.

Borchers said the new AppleCare One plan makes it "easier than ever" to protect the Apple products that customers "love and depend on."

AppleCare One is similar to AppleCare+, an existing extended plan for devices, but comes with some added features.

Among the features included in AppleCare One plans are unlimited repairs for accidents like drops and spills, battery coverage, theft and loss protection and 24/7 priority support from Apple experts.

Another difference from AppleCare+ is the new ability for consumers to add products they already own to the protection plan, as long as the devices are not more than four years old and are in good condition.

Read Also: Apple Stock Has ‘Near Term Headwinds, Significant Long-Term Opportunity’: Analyst Lays Out Bull, Bear Cases For Tech Giant

Why It's Important: The new plans offer extended protection to Apple users, allowing them to customize their plans with multiple Apple devices, including those purchased years ago.

The new plan comes with many of the same features of the current AppleCare+ plans, but also extends the benefits and increases the number of claims for lost and stolen damages to three per year from a current two.

Apple's Services segment is quickly becoming one of its most essential drivers of growth and margin expansion.

In the second quarter, Apple's Services segment hit a new all-time high of $26.65 billion, up from $23.87 billion in the prior year's second quarter.

The company also reported a new all-time high for the active installed base of devices.

With the new care plans, Apple may be able to continue monetizing its device holders through plans and subscriptions that generate high-margin recurring revenue.

AAPL Price Action: Apple stock traded at $214.19 on Wednesday versus a 52-week trading range of $169.21 to $260.09. Apple stock is down 12.5% year-to-date in 2025.

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