Now that they’re finally out, how much Apple AirTags cost? $29 for one, and $99 for a four-pack from Apple – and no monthly or annual charge!
How does AirTags cost compare to AirTag Competitors such as Tile and Chipolo (affiliate)? Read on below. (And for other questions and answers, see our AirTag FAQ)
AirTags Device Cost:
Tile prices its Pro line of bluetooth trackers at $35 each – or as low as $25 each if you buy a four-pack – which is the same as Apple AirTags. Tile also has sells the less-expensive Mate series of trackers for $25 each – or as low as $17.50 each if you them in a four-pack, but these really aren’t comparable… Think Apple would release something that wasn’t at the Tile Pro-level? We don’t. So expect that AirTags should cost somewhere in the range of $25 – Editor’s note, this AirTag Rumor was confirmed.
AirTags Monthly or Annual Service Cost?
Apple released its Q4’20 earnings release on September 20th, 2020 and put right in the headline that Services hit an all-time record – so its obviously an area of focus for the company in terms of how to grow its top-line. And, you can see in their actual 10-Q financials that Services accounted for 20% of fiscal 2020 revenue for Apple, and an impressive 34% of gross profit (Services are higher margin than hardware or “Products” as Apple calls them). So Services are a real thing… Apple wants you to pay them monthly, yearly, heck if you’ll pay them daily & buy them lunch they’d probably take that too.
But will AirTags simply fall into the Products revenue line item as a one-time charge on your Apple-branded credit card, or will AirTags have a recurring subscription fee? Well, unlike the competition (sorry Tile), AirTag does not require a monthly or annual service fee.
Tile sells its Premium service for $30/year and its Premium Protect product for $100/year. Tile Premium gives you additional features (smart alerts if you walk away from your device (e.g., you leave your wallet at the bar), free battery replacement, and 30-day location history for your devices), extended warranty (extends warranty on Tiles from 1-year to 3-years), and expanded customer service. Those last two (warranty and premium support) sound a lot like AppleCare, so we’ll have to see if Apple ultimately offers AppleCare for AirTags.
Will Apple offer a service for AirTags like Tile’s Premium Protect? Tile’s Premium Protect offers everything Tile Premium does… but it’s $100/year instead of $30, so what are you getting for that extra $70? Insurance. Premium Protect covers lost items that you had Tile trackers stuck for up to $1000 in reimbursements a year. Tile explains it like this “If your Tiled item is lost for any reason, and Tile can’t find it, we reimburse you. This service warranty provides up to $1000 per year with no additional fees through XCover.” XCover is a third-party insurance company with whom Tile works…
Do you think Apple wants to be in the insurance business? They sort of are already, with AppleCare, but that’s only for their own devices… I don’t see them wanting to insure against the theft of a lost bicycle. But hey – who’s Apple third-largest shareholder (after mutual fund companies Vanguard and Blackrock)? Why, it’s the insurance-magnate and Oracle-of-Omaha Warren Buffett’s very own Berkshire Hathaway. They own Geico and loads of other insurance companies. Maybe Apple would offer Geico insurance on AirTags Premium+ AppleCare+ Super-Duper-Crazy-Insurance? Editor’s note: <– that’s obviously not going to be the name of AirTags AppleCare… We clearly need to take a marketing class! We’ll have to see.
