How Apple might cash in on Apple Intelligence features
Apple Intelligence — the personal intelligence system for iPhone, iPad, and Mac — combines the power of generative models with personal context to deliver intelligence that’s useful and relevant to the user.
Despite facing some initial challenges, including, notably, a rather drawn out release schedule, in the rollout of its Apple Intelligence features, several Wall Street analysts and money managers believe that Apple will eventually find a way to monetize these innovations.
MoffettNathanson co-founder Craig Moffett highlighted the potential of a paid AI add-on in a note to clients following the September event. While the tech giant never said Apple Intelligence would be a paid tool, a subscription-based digital assistant would serve as a “powerful” crosscurrent for an iPhone upgrade cycle, he said. However, Apple does not seem to be in a hurry to “double monetize” the product at the moment, Moffett added.
“And that makes sense, given that use cases are still unclear, and the product is still in beta (and likely will be for some time), and Apple is still, at its core, a hardware company,” he wrote. “We interpreted the specific call out of its gratis inclusion in iOS to be a signal that it might be a while before Apple Intelligence is a stand-alone revenue driver for Apple.”
Gene Munster, managing partner at Deepwater Asset Management, suspects Apple could announce some premium integration with OpenAI’s GPT or Google’s Gemini for a fee to customers as soon as early next year.
MacDailyNews Take: Select Apple Intelligence features could be added as part of Apple One bundles starting at no extra charge, at first. Later, a price increase could cover AI services.
In August, analysts postulated that Apple could charge up to $20 per month for select Apple Intelligence features.
Also, it’s important to remember that as Apple Intelligence learns about each user, securely on-device, it becomes ever more personalized increasing the stickiness of Apple’s already-very-sticky ecosystem.
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