Apple may choose to charge users $20 to access premium AI features

Industry analysts reportedly expect Apple to pass on the high cost of investing in AI to customers.

Apple unveiled a slew of new AI features at its June developer conference, including integrating OpenAI's ChatGPT technology into its software. (Image Source: Reuters)

Amid the excitement and buzz around Apple’s forthcoming AI system, analysts have predicted that the tech giant could charge users a subscription fee for its more advanced AI features.

The iPhone-maker could ask users to pay between $10-$20 in order to access its premium AI services, according to a report by CNBC based on analysts’ inputs. They said that the company could potentially bundle its Apple Intelligence features with Apple One, which allows customers to subscribe to multiple services like Apple Music, Apple TV+, Apple News etc. with singular payments.

Apple One monthly plans start from $19.95, with Family and Premier subscriptions also available.

The Cupertino-based tech giant announced its AI offerings at the annual Worldwide Developers Conference (WWDC) in June 2024. Some of the AI features that will be baked into iOS 18, iPadOS 18, and macOS Sequoia are an AI-boosted Siri, generative AI writing tools, an image generator, and ‘Genmoji’ along with a ChatGPT integration.

Also Read | I tried Apple Intelligence on my iPhone 15 Pro, and it made me rethink what AI can do to simplify my life

So, why would Apple consider charging its customers extra for its AI services? According to the report, the add-on subscription fee could give the company’s lucrative services business a boost. In the June quarter, Apple reported that its services division generated $24.2 billion in revenue. “Apple is one of the few connected devices companies that has successfully monetised the value-added services it offers,” Ben Wood, chief of research at CCS Insight, was quoted as saying.

The cost could also be passed onto Apple customers because investment in AI is expensive, Neil Shah, partner at Counterpoint Research, said. In return, Apple users would get access to an AI system that learns from their behaviour and offers a personalised experience on their devices.

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“The beauty of AI is as you use [it] more and more, it learns about you, and you get locked into the model itself because you can’t bring your own model from Apple to Android,” Shah was quoted as saying.

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While it is expected to be rolled out to all devices later this year, Apple Intelligence won’t be available for customers in Europe and China due to regulatory concerns.

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