Apple once again demonstrates its innovative strategy by planning to put its upcoming Apple Intelligence feature under a paid subscription model, as a new source of revenue growth. In addition to ensuring that these advanced AI capabilities are limited to the latest devices, Apple is also considering implementing subscription fees for specific AI tools, similar to the current iCloud+ service. Users will pay on a monthly basis and have the flexibility to cancel the subscription at any time.
According to renowned tech journalist Mark Gurman's latest report in "Power On" newsletter, the proposed "Apple Intelligence+" service aims to attract new customer segments and open up a brand-new revenue channel for Apple. Given Apple's recent focus on extending product lifespan rather than frequent revolutionary hardware updates, this strategy aims to maintain market appeal through significant software innovations, especially with the help of new partners like OpenAI, to introduce impressive AI features. Apple intends to place these features behind a paywall outside of the devices and charge monthly fees for certain content within the AI suite, attracting new users and generating additional revenue.
"Apple Intelligence, including an upgraded version of Siri, will be a crucial testbed to determine whether software can significantly drive hardware sales," Gurman pointed out. "These features are likely to become the core highlights of iPhone 16 marketing, just like how Siri helped boost iPhone 4S sales when it debuted in 2011."
However, the specific launch date of the Apple Intelligence+ subscription service is still uncertain. It is expected that the initial Apple Intelligence suite (at least the part released this year) will be provided for free, while long-term profit plans have quietly been laid out.
"If everything goes smoothly, Apple may find itself in an advantageous position in the new competitive landscape in the coming years," Gurman predicted. "The company will reduce its reliance on hardware upgrades and instead profit from the field of artificial intelligence, which is a transformational direction that many Silicon Valley companies dream of."
Although Apple's move aims to create new revenue streams, its market response remains uncertain. Despite the popularity of generative AI, in regions where chatbots are widely used, such as the United States, only about 7% of adults regularly use them. As the release of Apple Intelligence approaches, iPhone users have been inquiring about how to disable or restrict these AI features, demonstrating the public's curiosity and caution towards new technologies.
Currently, the world is in the midst of an intense race in artificial intelligence, and the trend of widespread application of generative AI is unlikely to cool down quickly. Gurman expects that when Apple launches Apple Intelligence in the fall, it will at least establish a partnership with another chatbot manufacturer. Although there have been reports that Apple is not interested in Meta's Llama model, Google's Gemini and Anthropic's Claude are considered potential partners.
