Hardware Services. If during the Service Plan Term, You or Your Authorized User submits a valid service request by notifying Apple that (i) a defect in materials and workmanship has arisen in the Authorized Device or Included Equipment, or (ii) in relation to an Authorized Device or Included Equipment which uses an integrated rechargeable battery, where the capacity of the Authorized Device’s or Included Equipment’s battery to hold an electrical charge is less than eighty percent (80%) of its original specifications, Apple will either (a) repair the defect at no charge using new parts or previously used Apple genuine parts that have been tested and pass Apple functional requirements ,or (b) exchange the Authorized Device or Included Equipment with a replacement device (“Replacement Device”) that is new or comprised of new and/or previously used Apple genuine parts and has been tested and passed Apple functional requirements. Apple will use reasonable efforts to repair the Authorized Device. All Replacement Devices provided under this Service Plan will at a minimum have the same or substantially similar features (e.g., a different model with the same features or the same model in a different color) as the original product. If Apple exchanges the Authorized Device, or Included Equipment, the original Authorized Device or Included Equipment turned in to Apple becomes Apple’s property and the Replacement Device becomes the Institution’s (or the Authorized User’s if a BYOD device under a User Plan) property and shall be considered an Authorized Device or Included Equipment. The Service Plan will apply to the replacement Authorized Device or Included Equipment for the remaining period of the Service Plan.
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Sources: Applecare+ for Business Essentials Terms and Conditions, Applecare+ for Business Essentials Terms and Conditions