Apple is looking to expand its services business by introducing advanced artificial intelligence features that could potentially cost users up to $20. These features, part of the upcoming Apple Intelligence system, include enhanced Siri capabilities, automatic email and image generation, and more. While the initial rollout may not be available in all regions, Apple is considering charging a subscription fee for access to the more advanced AI apps.
According to analysts, the investment in AI development is significant, and Apple may pass on this cost to its users. Neil Shah from Counterpoint Research suggests that Apple could integrate the new AI features into its existing Apple One subscription model, which currently costs $19.95 per month. By charging an additional $10 to $20 for Apple Intelligence, Apple aims to monetize its services division further, which generated $24.2 billion in the June quarter.
Unlike many hardware companies, Apple has successfully monetized its software services, setting a precedent for premium offerings. Ben Wood from CCS Insight notes that Apple may choose to charge for more advanced AI features to capitalize on its loyal customer base. Additionally, Apple Intelligence could lead to a bundled subscription service with various services under a single price, enhancing revenue opportunities.
It is common for technology firms to charge for AI features, with examples such as OpenAI and Microsoft implementing subscription fees. Apple’s competitor, Samsung, is also exploring revenue models for its artificial intelligence services. By leveraging AI, Apple aims to strengthen customer loyalty through personalized experiences that adapt to user behavior over time, creating a unique value proposition for its ecosystem.
One of the key benefits of AI is its ability to learn from user interactions, leading to a more personalized and engaging experience. Neil Shah highlights that as users interact more with Apple Intelligence, they become locked into the ecosystem, as the AI system tailors itself to individual preferences. This lock-in effect enhances customer retention and strengthens Apple’s position in the market.
Apple’s decision to potentially charge for advanced AI features reflects its strategic focus on expanding its services business and monetizing software offerings. By introducing Apple Intelligence, the company aims to deepen customer engagement and secure long-term loyalty through personalized experiences. As the tech industry continues to evolve, AI will play a crucial role in shaping the future of user interactions and service monetization strategies.