Apple’s upcoming AI system, Apple Intelligence, is slated to arrive on iPhones, iPads, and Macs later this summer. However, according to Bloomberg’s Marc Gurman, the company is already considering charging users a monthly fee for access to certain features. While the basic capabilities showcased at WWDC 2024 will remain free, Apple is reportedly exploring an “Apple Intelligence+” program akin to its existing iCloud subscription model. This premium tier could offer additional features and functionality.
Apple has faced recent challenges in convincing consumers to upgrade their devices due to their increasing longevity and the challenging economic climate. The company’s devices now last longer than ever, with even older models remaining capable of running the latest operating systems. For instance, iOS 11 is expected to support Apple Intelligence when iOS 18, iPadOS 18, and macOS Sierra are released. Coupled with fewer significant design changes in recent devices, Apple is seeking to diversify its revenue streams through software subscription models.
This strategy shouldn’t come as a surprise to Apple users. The company has already announced plans to take a cut from subscriptions charged by its AI model partners, including Anthropic and Google, as well as those in the Chinese market. Therefore, implementing a premium subscription for Apple Intelligence aligns with Apple’s existing approach to leveraging AI partnerships for revenue. Diversifying income streams, whether through partnerships or subscriptions, provides Apple with greater flexibility in navigating potential market shifts. In this case, it reduces the company’s dependence on convincing consumers to purchase new, expensive smartphones every 18 months.
While Apple will likely continue to offer incentives for users to upgrade to the latest hardware, the company has acknowledged that older devices, such as seven-year-old Macs, will still be able to run the upcoming macOS Sierra. However, features like Game Mode and iPhone Mirroring will require newer hardware. Apple has also confirmed that its new AI features will be accessible only on Macs equipped with an M1 processor or newer.
Currently, there is no information available regarding the specific form, features, or pricing of the potential Apple Intelligence+ subscription model. However, the prospect of a subscription-based approach for premium AI features is gaining traction within the tech industry as companies seek innovative ways to monetize their AI advancements.
