Apple has not yet announced its pricing plan for its AI services, but experts believe that one of the above fee structures is likely to become a reality.
In less than two weeks after Apple announced that most users will have to wait until October to use the Apple Intelligence feature, more details about Apple's plans for AI integration have been revealed.
This is not good news for Apple users.
According to CNBC, although Apple Intelligence will be free at launch, this status may not last - at least not for all features. Apple has not made any announcements yet, but industry experts are warning users to be prepared to pay.
Neil Shah, a partner at Counterpoint Research, told CNBC that Apple is likely to pass on these costs to users because it has invested a lot of money in its AI experiments.
This could take the form of a subscription fee for accessing advanced features or a fixed fee for the entire AI functionality.
Shah said in an interview with CNBC last week, "Software and services make it more profitable for Apple to charge users through the Apple One subscription model." Apple One costs $19.99 per month and provides access to Apple Music, Apple TV, Apple Arcade, Apple Fitness+, cloud storage, and other services. Apple Intelligence's AI features may be part of Apple One, but it could also be a standalone subscription service, although Apple seems to prefer bundling it.
In any case, experts say that the pricing for Apple Intelligence is likely to be between $10 and $20 per month. In comparison, ChatGPT Plus and Microsoft Copilot Pro both cost $20 per month. Google's Gemini and Galaxy AI, which are customized services for specific smartphone brands, are free for users.
This is not new territory for Apple. Ben Wood, Chief Research Officer at CCS Insight, told CNBC that Apple is one of the few connected device companies that have successfully monetized value-added services, and the company has set a precedent for charging extra for premium services.
Software alone has brought Apple over $24 billion in quarterly revenue.
Like other AI assistants, Apple Intelligence will be able to edit photos, quickly summarize notes, text messages, and emails, compose messages, and transcribe voice recordings. It will be launched in October on iPhone, iPad, and Mac devices.
