Apple is reportedly considering charging its users up to $20 for its advanced artificial intelligence features, as it looks to expand its services business. The Cupertino giant is set to launch Apple Intelligence, its upcoming AI system, on some of its devices later this year. This move comes as Apple aims to bolster its Siri voice assistant and introduce new features, such as automatic email and image generation.
Industry analysts suggest that Apple may implement a subscription model for the more advanced AI applications. Neil Shah, a partner at Counterpoint Research, highlighted that investing in AI technology is costly, and Apple may pass on that expense to its users. Shah proposed that Apple could potentially offer these premium AI features as part of the existing Apple One subscription, which costs $19.95 per month.
Apple’s services division generated $24.2 billion in revenue during the June quarter, distinguishing it from other hardware companies that struggle to monetize software. Ben Wood, chief of research at CCS Insight, pointed out that Apple has successfully monetized value-added services, leading users to expect payment for premium offerings. This precedent may pave the way for Apple to charge for advanced features within the Apple Intelligence system.
While Apple explores the possibility of charging for AI features, other technology firms have already adopted similar strategies. OpenAI requires a subscription for advanced ChatGPT functions, and Microsoft charges for its AI Copilot tool. Samsung, Apple’s prominent competitor, is also evaluating different revenue models for its Galaxy AI services. These developments indicate a growing trend among tech companies to monetize AI technology.
According to Neil Shah, Apple Intelligence could enhance customer engagement by tailoring experiences based on user behavior. The AI system’s ability to learn and personalize interactions may strengthen Apple’s relationship with its loyal customer base. Shah emphasized that as users engage more with AI, they become increasingly reliant on the system, making it challenging to switch to alternative platforms.
Apple’s consideration of charging for advanced AI features represents a strategic move to capitalize on its services business and retain customers. By introducing a potential subscription model for the Apple Intelligence system, Apple aims to offset the costs associated with AI development. As the tech industry continues to embrace AI technologies, Apple’s approach to monetizing AI features aligns with market trends and competitive dynamics.
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