Opinion: Apple will charge up to $20 for advanced AI

Froklog · 2024-08-08T01:00:35+00:00

Analysts speculate that Apple may charge up to $20 for advanced artificial intelligence features to offset the high development costs. This could be part of a bundled subscription with other company products, but more likely Apple will sell premium features separately. Additionally, AI will help strengthen customer loyalty.

Froklog

2024-08-08 01:00:35

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Opinion: Apple will charge up to $20 for advanced AI

Corporation Apple may charge up to $20 for advanced artificial intelligence features. Analysts reported this, CNBC writes.

Counterpoint Research partner Neil Shah noted that AI investments for Apple are expensive and they will want to pass on the costs to end users.

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

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

“Apple is one of the few developers of connected devices that successfully monetizes additional services. The company has set a precedent where users have to pay for more premium features. It is not excluded that it will decide to charge for the advanced Apple Intelligence service,” noted CCS Insight research director Ben Wood.

The expert added that the American giant may launch a unified batch subscription with AI, but most likely it will not do so as not to dilute the income from individual products.

Shah noted that artificial intelligence will help Apple strengthen its already loyal customer base because it studies user behavior and becomes more personalized.

“The beauty of AI is that as you use it more, it learns more about you, and you find yourself locked into its model because you can’t move the neural network to Android. That’s when you start using more and more, getting used to it. This is where Apple monetizes,” Shah said.

On June 10, Cupertino-based company announced a large-scale initiative called Apple Intelligence.

Later it became known that the new functionality will not work in the EU in 2024.

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

Read on ForkLog in News+ format how Siri will improve thanks to Apple Intelligence:

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