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Experts suggest Apple Intelligence may charge up to $20 monthly for its advanced features, echoing other Apple subscription models.
Analysts Estimate Apple Intelligence Pricing
While Apple Intelligence will initially be free, Bloomberg reporter Mark Gurman reported last month that Apple is planning to provide a paid service similar to iCloud+ in the future, called "Apple Intelligence+," which will offer additional functionality to consumers for a monthly subscription.
If Apple were to include the capabilities in a revamped Apple One membership, according to Neil Shah of Counterpoint Research, who spoke with CNBC, the extra $10–$20 would be a reasonable price.
"Software and services makes it more lucrative for Apple to pass it on with the Apple One subscription model," Shah told CNBC last week.
Apple Music, Apple TV+, Apple Fitness+, extra cloud storage, and more are all part of Apple One, which users may access for $19.95 per month.
Premium Features for Apple Users
"Apple is one of the few connected devices companies that has successfully monetized the value-added services it offers," Ben Wood, chief of research at CCS Insight, said to CNBC. "As a result, it has set a precedent with its users that they have to pay for more premium services. On this basis, it can't be ruled out that Apple may choose to charge for more advanced features within its Apple Intelligence offering."
According to Wood, Apple Intelligence may provide the business with the opportunity to introduce a subscription service that bundles multiple services into one, similar to the new Apple One tier, but with a single pricing.
With $24.2 billion, up from $21.2 billion a year ago, services revenue set a new record for Apple in the June quarter, marking a sharp increase. Experts think that Apple may make up for the sluggish rate of hardware improvements and pass the high cost of its investment in AI onto users by creating its own AI features as an additional revenue stream from services.
AI Server Advancements
Per MacRumors, it has been alleged that Apple has begun manufacturing its own AI servers utilizing the M2 Ultra chip. Rumor has it that the company is also working on an AI server processor using TSMC's 3nm technology, which may be ready for usage as early as 2025. If true, this might improve the efficiency of Apple's data centers and any future cloud-based AI tools.
Apple expert Ming-Chi Kuo predicts that in 2024, the tech giant would invest billions in hardware to bolster its AI research and development efforts. Analyst Kuo predicted that Apple would invest "at least" $620 million in servers in 2023 and $4.75 billion in 2024.
