Apple offering existing iCloud storage customers grandfathered capacities, cheaper rates

As part of its new iCloud storage pricing initiative, Apple is allowing existing subscribers to keep "legacy" plans while paying a cheaper annual fee than they would if signed on to the monthly rates introduced on Wednesday.

While Apple's new iCloud storage tiers are only being offered as a monthly subscription service, the company is extending to existing customers an option to keep the same amount of cloud space for a less-expensive annual fee.

Apple sent out emails notifying paying iCloud storage customers that their existing annual accounts have been upgraded as a result of the new pricing tiers. According to the notice, refunds are also being issued based on the newly introduced price reduction and months remaining in a given subscription.

For example, with a 25GB plan (no longer offered), the annual price drops from $40 per year to only $11.99 per year. The savings is compares to Apple's new 20GB tier, which comes in at 99 cents per month, or $11.88 per year.

Apple notes that current customers will not be able to return to a grandfathered plan once they switch to one of the new monthly subscription offerings.

Earlier on Wednesday, Apple's new iCloud storage plans went live, with options ranging from a free 5GB tier to 1TB worth of space for $19.99 per month.