According to analysts, Apple is looking to charge its users up to $20 for its advanced artificial intelligence features. The tech giant plans to introduce Apple Intelligence, its upcoming AI system, to some of its devices later this year. These features include an enhanced Siri voice assistant, as well as capabilities to automatically generate emails and images. However, the rollout of these advanced features may come at a cost to the users.
Neil Shah, a partner at Counterpoint Research, pointed out that investing in AI is costly, and Apple may decide to pass on this cost to its users. The company could potentially offer these premium AI features as part of its Apple One subscription model, which costs $19.95 per month. Shah suggested that Apple might charge anywhere between $10 and $20 for Apple Intelligence to enhance its revenue from services.
Apple’s services division generated $24.2 billion in the June quarter, setting it apart from other hardware companies that struggle to monetize software. Ben Wood, chief of research at CCS Insight, mentioned that Apple has successfully implemented a subscription model for premium services, setting a precedent for its users to pay for additional features. This approach could pave the way for Apple to charge for more advanced AI offerings under Apple Intelligence.
With the launch of Apple Intelligence, the company could potentially introduce a bundled subscription service that includes various services at a single price point. However, Apple must carefully balance this approach to avoid diluting revenue from individual product subscriptions. This strategy aligns with the trend among technology firms, such as OpenAI and Microsoft, that charge for their AI services.
Samsung, Apple’s rival, has already initiated the rollout of its artificial intelligence services known as Galaxy AI but is still exploring different revenue models for its software. Similarly, Microsoft charges for its AI Copilot tool, demonstrating that monetizing AI features is a common practice in the tech industry. Apple’s decision to charge for premium AI features could help the company secure its loyal customer base even further.
Neil Shah emphasized that AI has the potential to create a personalized experience for users, making it difficult for them to switch to a different platform. As Apple Intelligence learns from user behavior, it becomes more tailored to individual preferences, strengthening the bond between Apple and its customers. Shah highlighted the advantage of AI in establishing brand loyalty and retention, as users become increasingly dependent on the personalized features offered by Apple.
Apple’s consideration of charging users for its advanced AI features reflects the company’s broader strategy to boost its services revenue and enhance user engagement. By offering premium AI capabilities under Apple Intelligence, Apple aims to deepen its relationship with customers and establish a sustainable revenue stream from its services division. As AI continues to evolve and play a crucial role in consumer technology, Apple’s decision to monetize these features could set a new standard for the industry.
Leave a Reply