Apple posted more details for AppleCare for the iPhone today and is now available for purchase from the Apple Store.
Each iPhone comes with one year of hardware repair coverage and up to two years of technical support. AppleCare for the iPhone extends your repair coverage to two years from the original purchase date.
You can purchase the AppleCare plan for the iPhone anytime within the one-year limited warranty. AppleCare, however, does not cover accidental damage.