Apple (NASDAQ:AAPL) may charge users up to $20 for its advanced AI features, as the company aims to boost its lucrative services business, analysts told CNBC.
The technology giant plans to roll out Apple Intelligence, its forthcoming AI system, across some of its devices later this year.
Announced in June, this AI system promises enhancements to Siri, as well as features like automatic email and image generation. These features will be introduced gradually, with regions such as China and Europe initially not receiving access.
Analysts suggest that Apple might charge a subscription fee for the more advanced applications.
Analysts at Counterpoint Research noted that investment in AI is costly, and Apple will likely pass that expense onto its users.
“Software and services makes it more lucrative for Apple to pass it on with the Apple One subscription model,” analysts told CNBC.
Apple One, which costs $19.95 per month, provides users access to various Apple services including Apple Music. Analysts indicated that Apple could charge between $10 and $20 for Apple Intelligence, potentially as part of the Apple One package for premium AI features.
According to analysts, AI provides Apple with an opportunity to further secure its already loyal customer base. Apple Intelligence will learn from a user’s behavior, becoming more personalized over time.
“The beauty of AI is as you use [it] more and more, it learns about you, and you get locked into the model itself because you can’t bring your own model from Apple to Android,” analysts explained.
“That is where you start using more and more, you get used to it more and that is where Apple monetization hits.”
Ben Wood, chief of research at CCS Insight, mentioned that Apple Intelligence could enable the company to launch a bundled subscription service, offering various services under a single price.
He said the iPhone maker is “one of the few connected devices companies that has successfully monetized the value-added services it offers.”