Smartphone Giants Battle for Loyalty via 'Care+' Protection Plans
Apple, Huawei, Xiaomi, and OPPO are leveraging extended warranty subscriptions to reduce ownership costs and secure recurring revenue.
Major smartphone manufacturers are increasingly competing over the terms of their extended warranty and accidental damage protection plans. As premium device prices rise, the 'Care+' model has become a primary battleground for Apple, Huawei, Xiaomi, and OPPO to differentiate their after-sales service.
Each provider has structured its offering to address common hardware failures. AppleCare+ allows for unlimited accidental damage incidents, provided the user pays a deductible. Huawei Care+ bundles accidental damage protection with extended warranties and battery replacement services. Similarly, OPPO Care+ provides a combination of damage protection and extended warranty coverage, while Xiaomi Care+ focuses on screen cracks and accidental damage across its various global markets.
The Shift to Subscription Service
This trend reflects a broader industry shift toward subscription-based protection models. By moving away from one-time warranty extensions toward comprehensive 'Care+' packages, manufacturers are transforming after-sales support into a value-add for high-end devices. This strategy allows brands to maintain a continuous relationship with the user throughout the device's lifecycle, rather than only at the point of sale.
Impact on Ownership and Revenue
For the consumer, the generosity of these plans directly dictates the total cost of ownership. A plan with lower deductibles or more comprehensive coverage—such as battery replacements—can significantly extend the longevity of a device and protect the user from sudden, high-cost repair bills.
For the manufacturers, these plans represent more than just customer service; they are high-margin recurring revenue streams. By locking users into a protection ecosystem, brands can increase customer retention and brand loyalty, making it more likely that a user will stay within the same hardware ecosystem when it comes time to upgrade.
The Search for the Best Value
While all four giants offer protection, the industry is still debating which provider offers the most generous terms. A research lead from 36kr recently suggested a comparative analysis to determine which of these plans provides the best balance of cost and benefit. As these plans evolve, the focus will likely shift toward more personalized coverage and integrated insurance models to further capture the premium market.