Apple's foray into artificial intelligence is set to make waves, with the tech giant reportedly planning to charge users up to $20 for its advanced AI features. As Apple gears up to launch its AI system, known as Apple Intelligence, the company is eyeing an opportunity to boost its lucrative services segment.
Expected to roll out later this year, Apple Intelligence promises enhancements to Siri and introduces capabilities like automatic email and image generation. However, not all regions will see these features immediately, with China and Europe being among the first to miss out. Analysts predict that Apple might implement a subscription model for access to these premium AI functionalities.
Neil Shah of Counterpoint Research highlights the significant investment Apple has made in AI and suggests that the company could recoup some of these costs by charging between $10 and $20 for Apple Intelligence. This fee could be bundled into the existing Apple One subscription, which currently offers a suite of Apple services for $19.95 per month.
Apple's services sector, which generated $24.2 billion in the last quarter, has proven adept at monetizing software and services, setting it apart from many hardware-focused competitors. CCS Insight’s Ben Wood notes that Apple's success in this area suggests the company is well-positioned to introduce paid premium features within its AI offerings.
The trend of monetizing AI is not unique to Apple. OpenAI and Microsoft have already implemented subscription fees for advanced AI features, and Samsung is exploring various revenue models for its Galaxy AI services. For Apple, integrating AI into its ecosystem not only enhances user experience but also further locks customers into its products, creating a more personalized and sticky service.
As Apple rolls out its AI features, it will be interesting to see how users respond to the new pricing models and whether Apple Intelligence will further cement the company’s position in the competitive tech landscape.
