Apple (AAPL) has recently faced some drastic changes in customer behavior amid the growing threat of tariffs.

During the holiday season late last year, Apple hit a rough patch with sales, as many consumers pulled back their spending on new electronics while battling higher costs for everyday goods and services. A survey from WalletHub in September last year found that 63% of Americans said they will not buy a new phone due to inflation.

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵

During the fourth quarter of 2024, Apple’s iPhone revenue dipped by almost 1% year-over-year, while its wearables, home, and accessories revenue dipped by 1.7%.

Related: Apple makes unexpected move to dodge high tariff costs

However, sales took a sharp turn after President Donald Trump announced sweeping tariffs on multiple countries soon after he took office in January. Analysts estimated that President Trump’s tariffs could increase the price of an iPhone by over $300.

Many consumers rushed to upgrade their devices before tariffs officially took effect to avoid paying higher prices for electronics.

During the first few months of this year, Apple’s iPhone sales revenue spiked by almost 2% year-over-year, with Mac and iPad sales also increasing. However, wearables, home, and accessories sales revenue continued to struggle, declining by nearly 5%.

Customers will now be able to cover multiple Apple devices under one protection plan.

Image source: Cheng Xin/Getty Images

Apple makes a bold announcement 

Amid recent shifts in customer behavior, Apple has decided to launch a new subscription plan in the U.S. that tackles a major pain point and targets customers who have older devices.

Apple has introduced AppleCare One, which allows customers to cover multiple Apple devices under one plan. Customers can protect up to three Apple devices for $19.99 a month, and can add extra devices to the plan for an additional $5.99 per month for each product.

The new plan covers unlimited repairs for accidents and offers customers 24/7 priority support from tech experts. It also provides battery coverage and expanded theft and loss protection for iPhone, iPad, and Apple Watch devices.

Apple claims that AppleCare One allows customers to save $11 a month, compared to purchasing separate AppleCare+ plans for each device.

Related: Verizon hopes a new tactic will fix fleeing customer problem

Customers can even add Apple devices they own that are up to four years old to the plan, as long as they are in good condition. This is dramatically longer than the current 60-day window customers have to purchase AppleCare+.

Headphones can also be added to an AppleCare One plan; however, they must be less than one year old.

Also, it is essential to note that customers cannot pay for AppleCare One annually, unlike AppleCare+.

“Built on the trusted foundation of AppleCare+, AppleCare One extends that same reliability and makes it easier than ever to protect the products you love and depend on like iPhone, iPad, and Apple Watch, combining simplicity and exceptional value,” said Bob Borchers, Apple’s vice president of Worldwide Product Marketing, in a recent press release.

Apple’s new subscription plan may not appeal to all customers

While the plan allows customers with older devices to purchase coverage, AppleCare+ may be a cheaper option for those customers specifically looking for coverage within 60 days of their purchase.

Coverage with AppleCare+ (including theft and loss protection) starts at $7.99 a month for the oldest iPhone models, and for the oldest iPad and Apple Watch devices, it starts at $4.99 and $2.99, respectively.

More Retail:

• Costco quietly plans to offer a convenient service for customers
• T-Mobile pulls the plug on generous offer, angering customers
• AT&T makes generous offer to older customers

For customers with newer devices, AppleCare One is the better option, since purchasing AppleCare+ for each device can cost more than $19.99 a month.

The new AppleCare One plan announcement mainly drew positive reactions from consumers, who took to social media platform Reddit to express excitement about the new plan’s convenience. However, some did express concerns.

“This is excellent for me. It’s cheaper than covering my M4 Max MBP, iPhone 16PM with Theft/Loss, and my 2022 iPad Pro separately,” wrote one user on Reddit.

“Ok great deal and makes sense. I just hope they don’t increase their prices dramatically every year,” wrote another.

“Rather just pay for AC+ at the start and not worry about having a monthly payment,” said another Redditor.

Related: Intel CEO warns employees of a sad new reality amid layoffs