>> Part of the functions of Apple Intelligence may be paid/Apple
Soon, iPhone owners will be able to use Apple Intelligence. However, you should be prepared that Apple can charge its users up to $20 for using advanced artificial intelligence functions.
This was reported by CNBC analysts. The move comes as the company looks to accelerate growth in its lucrative services business.
The Cupertino giant plans to roll out Apple Intelligence, its future artificial intelligence system, on some of its devices later this year.
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When Apple announced its AI system in June, the company promised an improved Siri voice assistant and features including the ability to automatically create emails and images. While these features will roll out slowly, and regions like China and Europe won't get access to them at first, Apple could charge subscription fees for more advanced apps, analysts say.
Neil Shah, a partner at Counterpoint Research, said that investing in AI is expensive and Apple will want to pass those costs on to its users.
“Software and services make it more profitable for Apple pass them on to users through the Apple One subscription model,” Shah told CNBC last week.
Apple One costs $19.95 per month and gives users access to various Apple services, including Apple Music.
Shah said that Apple could charge $10 to $20 for Apple Intelligence, potentially as part of Apple One, for more premium AI features.
In the June quarter, Apple's services division brought in $24.2 billion, making it a unique as many other hardware manufacturers have failed to monetize their software.
“Apple is one of the few device companies that has successfully monetized the value-added services it offers,” said Ben Wood, head of research at CCS Insight, in an interview with CNBC this week.
As a result, it has set a precedent for its users that they should pay for more premium services. Based on this, it cannot be ruled out that Apple may decide to charge for more advanced features as part of its Apple Intelligence offering.
Wood added that Apple Intelligence could give the American giant the opportunity to launch a bundled subscription to various services for at a single price.
“But Apple also doesn't want to dilute subscription revenue for individual products,” he said. png” alt=”Some Apple Intelligence features may come at a cost: Expert reveals subscription cost” />
It's not unusual for tech companies to charge for their AI offerings. For example, OpenAI charges a subscription fee for more advanced features of ChatGPT, and Microsoft charges for its AI tool Copilot.
Apple's biggest competitor, Samsung, which has already started rolling out its AI services, known as Galaxy AI, is still considering different models revenue for its software, its mobile boss told CNBC last month.
According to Shah, artificial intelligence gives Apple a chance to further cement its already loyal customer base, as Apple Intelligence will learn from user behavior and become more personalized.
The beauty of AI is that as you use it more and more, it learns about you and you become attached to yourself models because you can't port your own model from Apple to Android,
Shah said.
Well, we just have to wait for Apple Intelligence to be officially available. Then we will find out if the company plans to charge extra for using premium features.