Apple is looking at its AI features as a possible revenue model and the company might soon introduce two tiers of Apple Intelligence, one available for free on select devices with the other being a premium set of features exclusive to paid users (similar to the iCloud+ subscription), suggests a report by Bloomberg.
Hardware sales across the smartphone and computer industry have declined post-pandemic, affecting Apple as well. This has forced manufacturers to look at alternative streams of revenue, possibly through value-added services. Apple is said to be looking at the AI frenzy as one such avenue.
These features could be called Apple Intelligence+ and might come with a monthly fee for access. Apple is also expected to partner with more AI vendors such as Google in the coming days to offer more choices to users, suggests another report by Bloomberg.
The report also highlights that even Apple’s hardware innovation has slowed down a bit, considering how the iPhone 15 Pro looks almost exactly similar to the more than three-year-old iPhone 12 Pro, except for the increase in the use of premium titanium. Even the upcoming third-generation Apple Watch Ultra is said to look similar to the first two models. The same also goes for Macs which almost look identical to their three- or four-generation-older models, and a design overhaul is not due at least until 2025-26.
Apple is also said to be looking at ways to make its devices more durable to increase longevity while looking at software and AI experiences as an opportunity to increase revenue. The newly announced Apple Intelligence features at WWDC 2024 are only coming to Macs and iPads with the M-series chips. Similarly, for iPhones, these features are only compatible with the high-end iPhone 15 Pro series, although the new iOS 18, iPadOS 18, and macOS Sequoia are coming to a lot more devices.
While Apple didn’t announce much about Apple Intelligence coming to Vision Pro, the company is said to be working on the same, considering it has the required hardware (M2 chip, 16 GB RAM).