According to analysts, Apple’s upcoming AI features, collectively called Apple Intelligence, could cost users $10 to $20 a month.
This follows the release of the iOS 18.1 beta, which included earlier versions of these features. Apple has a good track record in monetizing services, coupled with the high cost of AI development, making the paid subscription model possible.
Currently, Apple Intelligence provides features including notification summaries, smart replies in emails and Siri upgrades. Future features include generating images using Image Playground and Genmoji.
Apple’s third-quarter earnings report showed services revenue of $24.4 billion, exceeding total revenue from wearables, Macs and iPads. Although Apple has not yet confirmed Apple Intelligence’s pricing, there is a strong possibility that it will be included in Apple One, a bundled subscription service.
Apple may charge users up to $20 for advanced artificial intelligence features as the company looks to drive growth in its lucrative services business.
When Apple launched its AI system in June, it promised to launch an enhanced version of Siri’s voice assistant, as well as features such as automated generation of emails and pictures. Analysts said that while the features will be slow to roll out and will not be initially available in regions such as China and Europe, Apple may charge subscription fees for more advanced apps.
Neil Shah, a partner at Counterpoint Research, said that investment in artificial intelligence is costly and Apple hopes to pass on this cost to users. Shah said Apple could charge Apple Intelligence between $10 and $20, which could be part of the Apple One, to provide more advanced AI features.
Apple plans to launch an artificial intelligence system called Apple Intelligence later this year, which aims to enhance the Siri voice assistant and introduce features such as automated generation of emails and images. Analysts expect Apple may charge a subscription fee for the more advanced app with advanced artificial intelligence features, which could range from $10 to $20 a month.
At the same time, Apple’s competitor Samsung is also considering exploring different revenue models for its Galaxy AI service.
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Original text:https://www.pcmag.com/news/analysts-apple-intelligence-features-may-eventually-cost-up-to-20-per-month
CNBC Original:https://www.cnbc.com/2024/08/08/apple-could-charge-20-for-some-apple-intelligence-features-analysts.html
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