Apple may charge up to $20 for Apple Intelligence to provide more advanced AI features
Apple may charge up to $20 for its Apple Intelligence to provide more advanced artificial intelligence features. Apple hopes to lock in its loyal customer base through AI. Apple's financial report released last week showed that service revenue in the third quarter was $24.2 billion, making it unique in software monetization. Ben Wood, research director at CCS Insight, said that Apple is one of the few device companies that have successfully monetized value-added services. Apple may choose to charge for more advanced features in Apple Intelligence
According to Counterpoint Research partner Neil Shah, Apple (AAPL.US) may charge up to $20 for its Apple Intelligence to provide more advanced artificial intelligence (AI) features. Neil Shah added that investing in AI is expensive, and Apple hopes to pass on this cost to users.
Neil Shah pointed out that Apple aims to promote the growth of its profitable service business, as AI can give Apple the opportunity to further lock in its loyal customer base by learning from user behavior and becoming more personalized.
Last week, Neil Shah stated that software and services allowed Apple to achieve higher profits through the Apple One subscription service. It is reported that Apple One is a subscription service launched by Apple that integrates Apple Music, Apple TV+, Apple Arcade, iCloud+, News+, and Fitness+ together for a monthly fee of $19.95.
Apple's financial report released last week showed that service revenue in the third quarter was $24.2 billion, distinguishing the company from many other hardware companies that have struggled to monetize software. Ben Wood, director of research at CCS Insight, stated: "Apple is one of the few connected device companies that have successfully monetized the value-added services they offer." "Therefore, it has set a precedent for users that they must pay for more advanced services. Based on this, it is not ruled out that Apple may choose to charge for more advanced features in Apple Intelligence."
Ben Wood added that Apple Intelligence allows Apple to offer multiple service bundles at a single price through subscription services, "but at the same time, Apple is also unwilling to dilute the revenue from individual product subscriptions"