Apple may reportedly introduce a paid subscription to Apple Intelligence to boost revenue

Apple Intelligence could become a new revenue channel for the company in the future, according to the report. The Cupertino-based tech giant announced its suite of artificial intelligence (AI) features called Apple Intelligence at the Worldwide Developers Conference (WWDC) 2024. Once it rolls out, users will get features like AI-powered Siri, Writing tools in applications, and image generation features through Image Playground. ChatGPT also integrates into the tech giant’s operating systems. For now, these features will be available for free, but that may change in the future.

Apple Intelligence could reportedly get a paid tier

Bloomberg’s Mark Gurman said in the Power On newsletter that the tech giant’s long-term plan with Apple Intelligence could be to generate revenue through it. The report further adds that the company may launch a service called “Apple Intelligence+” in the future with some cutting-edge AI features that require a monthly fee to access, similar to existing iCloud or Apple Music subscriptions.

The reasoning Gurman gave behind creating more revenue channels through the software and services route is that the company has witnessed a decline in sales of its devices in recent years. The decline is said to be due to a slowdown in hardware innovation, a lack of major design changes, and improved device longevity due to the use of more durable materials.

According to the report, one way Apple could consider ensuring revenue growth despite slower consumer device upgrade cycles is to focus on its AI software services. The tech giant’s deal with OpenAI will also give it a cut of the subscription revenue the AI ​​company makes from Apple users. Similar clauses could be put into contracts with other speculated AI partners such as Google and Anthropic.

Despite this speculation, Apple has said that the AI ​​features will be available for free to those using compatible devices. Namely, only iPhone 15 Pro and iPhone 15 Pro Max will support Apple Intelligence at launch. AI features could be extended to older devices using Private Cloud Compute, the company’s cloud servers to power AI computing, which was also announced at WWDC this year.