Apple
Apple has found yet another way to put its forthcoming Apple Intelligence features behind a paywall. In addition to reserving Apple Intelligence for the latest device models, Apple is reportedly mulling paid subscriptions for certain AI-powered tools.
The subscription model would mimic Apple’s existing iCloud+ services, which charge users a quit-anytime monthly fee.
The rumored “Apple Intelligence+” offering would woo new customers while creating a new revenue stream for Apple, Bloomberg’s Mark Gurman writes in the latest issue of his Power On newsletter. From a hardware standpoint, Apple has focused more on longevity than on major device updates over the past few years.
This might help retain current Apple customers but doesn’t entice new ones. By leveraging its flashy new OpenAI partnership to offer major software features, putting those features behind a device paywall, and then charging users a monthly fee to use certain parts of the AI suite, Apple might be able to court new users while raking in some extra cash.
“The Apple Intelligence capabilities, including an upgraded version of Siri, will be the biggest test of whether software can drive a hardware sales surge,” Gurman writes. “The features are likely to be a centerpiece of Apple’s marketing for the iPhone 16, just as ads for the original Siri helped drive sales of the iPhone 4S in 2011.”
Apple isn’t expected to introduce Apple Intelligence+ subscriptions right off the bat. Instead, the Apple Intelligence suite—whatever parts of it debut this year, at least—will start out free, with the long-term plan to monetize sitting just over the horizon.
“If it all comes together, Apple could find itself in a strong position in a few years,” says Gurman. “The company will be less reliant on hardware tweaks to drive its business and will actually be making money from AI—something everyone in Silicon Valley is hoping to pull off.”
Even if Apple does decide to initiate a subscription-based revenue stream, its reception might fall short of expectations. Despite the hype around generative AI, only one in 14 adults use chatbots regularly in the United States, where chatbots are most popular.
iPhone users are also already asking how to opt out of generative AI features when Apple Intelligence rolls out later this year. AI might be a major marketing buzzword, but that doesn’t necessarily mean people want it on their devices.
We’re in the throes of the AI arms race, though, and the realities of generative AI’s usage aren’t likely to deter any major technology company anytime soon.
Gurman expects Apple to partner with “at least” one additional chatbot maker by the time Apple Intelligence launches this fall. While his sources report that Apple has “zero interest” in working with Meta’s Llama model, Google’s Gemini and Anthropic’s Claude are both thought to be in the running.
