Key Takeaways:
Apple’s upcoming artificial intelligence features, known as Apple Intelligence, are generating significant buzz due to their potential cost. Analysts have suggested that Apple may charge between $10 and $20 per month for access to these advanced AI tools.
This move could integrate these features into the existing Apple One subscription bundle, which already includes services like Apple Music, Apple TV+, and Apple News+ for $19.95 a month.
At those prices, I hope Apple Intelligence has a sense of humor!
— StarStruck Gifts (@StarstruckGifts) August 8, 2024
Neil Shah, a partner at Counterpoint Research, emphasized that “Software and services make it more lucrative for Apple to pass it on with the Apple One subscription model.”
This indicates that Apple is looking to monetize these AI advancements by leveraging its already successful subscription framework.
If I can use it on my 14 Pro then yes
Otherwise I’ll keep paying for ChatGPT
— Ale𝕏 Fife (@alextfife) August 8, 2024
Given this, it’s plausible that Apple may indeed charge for more advanced AI features within its Apple Intelligence offering.
The introduction of these AI features was initially revealed during Apple’s June Worldwide Developers Conference. Some of these capabilities include an enhanced version of Siri, which will better understand user queries and have access to personal information to provide more contextual responses.
After already paying 1k-1500 for the phone…?
— Chris 𝕏 (@cwchris_) August 8, 2024
Additionally, the AI will offer features like automated summaries of text messages, voicemails, and emails, as well as generating emojis and images.
While these features were made available to select software developers for testing in late July, the public rollout has been delayed to October following the release of iOS 18 and iPadOS 18. This delay is reported to ensure the smooth integration of AI capabilities within Apple’s ecosystem.
Not buying it. Not sufficiently impressed to pay.
These are functionalities the public was promised a long time ago, that Siri would accomplish. They’re also not nearly groundbreaking use-cases.
The value is not high enough to warrant another subscription.
— Borg (@sol_roi) August 8, 2024
The strategic importance of Apple Intelligence extends beyond just adding new features. As these AI tools are used more frequently, they will gather more data, becoming increasingly personalized to each user.
This deep integration means that switching away from Apple Intelligence—and, by extension, Apple’s devices—will become more challenging for users, effectively locking them into Apple’s ecosystem.
Apple’s AI initiatives come at a time when the company is seeing substantial growth in its services division. In the second quarter, Apple reported services revenue of $24.21 billion, surpassing analysts’ expectations.
The introduction of Apple Intelligence could further strengthen this division, contributing to continued revenue growth.
I’m assuming anything that runs on device will always be free, right?
— Kyle ✌🏻❤️ (@kylecoolky) August 8, 2024
Meanwhile, Apple’s competitors are also making moves in the AI space. Microsoft, for instance, charges $20 a month for its Copilot Pro, which offers advanced AI functionalities.
Samsung has also begun rolling out its version of AI, Galaxy AI, which includes features like auto-generated summaries, live conversation translation, and auto-zoom camera capabilities.
Apple iPhone is costly, but its services are even more costly.
— Aakash Gour (@AakashGourX) August 8, 2024
Samsung is still exploring different revenue models for its AI offerings, leaving it unclear whether it will directly compete with Apple in the subscription space.
Apple’s foray into AI subscription services represents a strategic push to stay ahead in the technology race, ensuring that its ecosystem remains robust and appealing to users.
Lmfao 🤣 next thing you know you going to have to pay $19.99 to charge your phone
— 𝓡𝓪𝔂 𝓓𝓪𝓿𝓲𝓭 𝓓𝓮𝓵𝓿𝓪𝓵𝓵𝓮 (@justAT3chGuy) August 8, 2024
The challenge, however, will be in convincing users to adopt these paid AI features amidst a growing market of subscription-based services.
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