Apple’s AI Features May Cost Up to $20, Analysts Suggest

Apple Inc. might charge up to $20 for advanced artificial intelligence features, according to analysts, reports CNBC. 

Neil Shah, a partner at Counterpoint Research, noted that the company’s investments in AI are costly, and it plans to pass these expenses onto end users. 

“Software and services make the Apple One subscription model more profitable for Apple,” he said. 

For $19.95, the subscription provides access to various company products like Apple Music. Shah believes the corporation might charge $10-20 for additional premium Apple Intelligence features. 

“Apple is one of the few connected device developers that successfully monetizes additional services. The company has set a precedent where users are expected to pay for more premium features. It is possible they will decide to charge for the advanced Apple Intelligence service,” noted Ben Wood, head of research at CCS Insight.

The expert added that the American giant might launch a unified subscription package with AI, but is unlikely to do so to avoid diluting revenues from individual products. 

Shah highlighted that artificial intelligence will help Apple strengthen its already loyal customer base, as it learns user behavior and becomes more personalized. 

“The beauty of AI is that as you use it, it learns more about you, and you become locked into its model because you cannot transfer the neural network to Android. At this point, you start using it more and more, getting accustomed to it. This is where Apple’s monetization occurs,” said Shah.

On June 10, the Cupertino-based company announced a major Apple Intelligence initiative. 

Later, it became known that the new functionality will not be operational in the EU in 2024. 

In late July, Apple’s AI tools appeared in the beta version of iOS 18.1. 

To learn how Siri will improve with Apple Intelligence, read on ForkLog in the News+ format: