Apple is considering charging its users up to $20 for access to advanced artificial intelligence features. The company plans to introduce its Apple Intelligence system later this year, with enhanced Siri voice assistant capabilities and the ability to automatically generate emails and images. Although these features will be gradually rolled out, users in certain regions, such as China and Europe, may not have immediate access. Analysts believe that Apple’s investment in AI is costly, and as a result, the company may decide to pass some of that expense on to its users. Neil Shah from Counterpoint Research suggests that Apple could introduce a subscription model, similar to the Apple One service which costs $19.95 a month, to offer more premium AI features.
Apple’s services division generated $24.2 billion in revenue in the June quarter, showcasing the company’s ability to monetize software offerings successfully. Unlike many other hardware firms, Apple has managed to capitalize on value-added services, creating a precedent for charging users for premium offerings. Ben Wood from CCS Insight notes that Apple’s success in this area may lead to additional charges for advanced features within the Apple Intelligence system. By potentially bundling these services under a single price, Apple could introduce a more comprehensive subscription model. However, the company is also likely to be cautious about undermining revenue from individual product subscriptions.
Charging for AI services is not uncommon within the technology sector. Companies like OpenAI and Microsoft already have subscription fees for advanced AI offerings, demonstrating the value of these features. Apple’s main competitor, Samsung, is also exploring different revenue models for its Galaxy AI services. For Apple, AI presents an opportunity to further engage its loyal customer base by providing personalized experiences. With Apple Intelligence learning from user behavior, customers are more likely to remain within the Apple ecosystem due to the tailored services offered. This could further solidify Apple’s relationship with its users and increase brand loyalty over time.