Apple has decided to sell its AppleCare warranty business in a bid to “reduce risk” in the arbitration market, the company said in a regulatory filing on Wednesday.
AppleCare, which is a product of Apple’s retail stores, is a key revenue stream for the company.
It helps the company maintain and expand its retail presence, with the expectation that customers will pay the price for the service when they buy products at stores.
AppleInsider first reported the move on Wednesday, citing unnamed sources.
Apple had long been rumored to be looking to sell the AppleCare business.
A recent report by The Wall Street Journal, citing a source familiar with the matter, said that Apple was “actively looking to reduce the risk associated with its product warranties” to improve its ability to retain customers.
The filing for AppleCare’s sale states that the company is moving “to the next level” by selling its warranty business and also that it plans to “invest in the next generation of customer service offerings” that “improve the customer experience.”
“We’re moving to the next step in our transformation,” AppleCare said in its filing.
“We believe we need to accelerate our business to ensure that we are profitable and that we can continue to deliver our customers the best value.”
In January, AppleInsider reported that Apple had begun discussions with the Consumer Product Safety Commission about selling the company’s warranty business.
AppleInsiders source said the talks are “really moving forward” and “were about the next stage in the transformation of AppleCare.”