Apple may charge its users up to $20 for advanced artificial intelligence features as the company seeks to boost the growth of its profitable services business. The tech giant from Cupertino plans to launch "Apple Intelligence," its upcoming AI system, across some of its devices later this year. When Apple announced its AI system, the company promised an enhanced voice assistant "Siri," along with features including the ability to automatically create emails and images, according to a report published by the American news network CNBC, which was reviewed by Al Arabiya Business.
Analysts indicated that while these features will be rolled out gradually, regions such as China and Europe may not have initial access. Apple may impose a subscription fee for the most advanced applications. Neil Shah, a partner at Counterpoint Research, stated that investing in AI is costly, and Apple would want to pass this cost onto its users.
In an interview last week, Shah said, "Software and services make it more profitable for Apple to pass this through the Apple One subscription model." The cost of Apple One is approximately $19.95 per month, allowing users to access various Apple services, including Apple Music. Shah noted that Apple could charge between $10 and $20 for "Apple Intelligence," potentially as part of the Apple One subscription for additional premium AI features.
Apple's services segment generated about $24.2 billion in the second quarter, making it unique as many other hardware companies have struggled to monetize software. Ben Wood, head of research at CCS Insight, stated, "Apple is one of the few connected hardware companies that has succeeded in monetizing the value-added services it offers." Consequently, it has established a precedent with its users that they must pay for more premium services. Based on this, it cannot be ruled out that Apple might choose to charge for more advanced features within its "Apple Intelligence" offering.
Wood also mentioned that "Apple Intelligence" could give the American giant the option to launch a bundled subscription service with various offerings at a single price. He said, "However, Apple would also be reluctant to dilute revenue from individual product subscriptions." It is not uncommon for technology companies to charge fees for their AI offerings. For instance, OpenAI charges subscription fees for the more advanced features of ChatGPT, and Microsoft charges for its AI tool Copilot.
