Apple may charge $20 monthly fee for advanced AI features
Apple is considering a fee of up to $20 for its upcoming advanced artificial intelligence (AI) features, according to industry analysts. The tech giant plans to roll out 'Apple Intelligence,' a new AI system, across select devices later this year. This system, announced in June, promises an improved Siri voice assistant and capabilities such as automatic generation of emails and images.
Apple Intelligence could be part of Apple One subscription
Analysts predict that Apple may introduce a subscription fee for these advanced AI features. Neil Shah, partner at Counterpoint Research, suggested that the company could charge between $10 and $20 for Apple Intelligence. He further speculated that this could potentially be included in the existing Apple One subscription model for premium AI services.
Apple's successful monetization of value-added services
Apple's services division generated a whopping $24.2 billion in the June quarter, highlighting its successful software monetization strategy. Ben Wood, chief of research at CCS Insight, told CNBC that "Apple is one of the few connected devices companies that has successfully monetized the value-added services it offers." He also suggested that Apple Intelligence could provide an opportunity for the company to launch a bundled subscription service with various services under a single price.
Apple's approach to AI offerings and market competition
Charging for advanced AI features is a common practice among tech firms, with companies like OpenAI and Microsoft already implementing subscription fees for their advanced ChatGPT features and AI Copilot tool, respectively. Samsung, a major competitor of Apple, has begun rolling out its Galaxy AI services but is still exploring various revenue models for its software.
