Apple is considering charging its users up to $20 for advanced artificial intelligence features, according to analysts. The tech giant plans to introduce Apple Intelligence, its upcoming AI system, on some devices later this year. This move is part of Apple’s strategy to boost its services business, which has been growing rapidly in recent years.
Analysts believe that Apple could potentially charge between $10 and $20 for its advanced AI features. This could be integrated into the existing Apple One subscription model, which costs $19.95 per month and offers access to various Apple services, such as Apple Music. The high cost of developing AI technology is one reason why Apple may choose to pass on the expenses to its users through a subscription model.
Apple’s services division generated $24.2 billion in revenue in the June quarter, showcasing the company’s success in monetizing software in addition to hardware. Ben Wood, chief of research at CCS Insight, pointed out that Apple has set a precedent for charging users for premium services. As a result, it is not surprising that Apple may choose to charge for more advanced AI features within its Apple Intelligence offering.
Other technology firms, such as OpenAI and Microsoft, also charge for their AI offerings. OpenAI has a subscription fee for advanced ChatGPT features, while Microsoft charges for its AI Copilot tool. Even Apple’s competitor Samsung is exploring various revenue models for its artificial intelligence services. This demonstrates that charging for AI features is a common practice in the industry.
Neil Shah, partner at Counterpoint Research, believes that Apple’s AI technology could help the company further solidify its loyal customer base. Apple Intelligence has the capability to learn from user behavior and provide personalized experiences. Shah emphasizes that as users continue to use AI, they become more entrenched in the ecosystem, making it difficult for them to switch to other platforms.
Apple’s decision to potentially charge users for advanced AI features reflects the company’s focus on expanding its services business. The introduction of Apple Intelligence will not only enhance user experiences but also generate additional revenue for the tech giant. By capitalizing on the growing demand for AI technology, Apple aims to strengthen its position in the increasingly competitive tech industry.
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