That's not what the sales man told me at the AT&T store. I'm gonna go to Apple and get a definitive answer. I payed 450 for my phone and dident want to shell out another 100 on the spot.AppleCare gives to 2 years service the include 2 breakage or water damage. It cost 99 bucks also I believe it gives you 2 years phone support. The Apple care also will cover the charging block and cord. I was told by the rep a Apple store you had to buy it within 30 days.
If you didn't buy AppleCare at the time of purchase you have 30 days to get to an Apple store to get it inspected by a Genius.
http://store.apple.com/us/product/S4575LL/A/applecare-for-iphone
Thats the way they used to do it. Now you only have 3odays but they included the water damage and broken phone in it. It also used to be $69 now its $99I thought it comes with a year, and just like the MacBooks, you have that year to purchase additional coverage.
iPhone was here