What exactly does AppleCare cover for an iPhone4S?

I purchased AppleCare when I bought my iPhone 4s Last December (2011). I am wondering, what does this plan actually cover, when is it possible to get a new phone (for free? or less price)?

when is it possible to get a new phone (for free? or less price)?
Never, if by that you mean a newer model. AppleCare covers manufacturing defects, just as the original warranty did, so if your iPhone has a hardware problem during the AppleCare period, Apple will replace it with another unit of the same model and configuration.
Regards.

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    Regards.

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