Apple could charge as much as $20 per month for premium AI features
Hey iPhone users, you didn't think that Apple was going to give you Apple Intelligence without having to make you deal with Apple Monetization, did you? Some analysts are forecasting that at some stage of this phased rollout, the tech giant could charge as much as $10-$20 per month for some of the more advanced Apple Intelligence capabilities. Apple has released some AI features with the Apple Intelligence Beta that can be installed by U.S. purchased iPhone 15 Pro and iPhone 15 Pro Max models only, with the iOS 18.1 Developer Beta.
Those who don't install Beta software will have to wait until iOS 18.1 is released to get a shot at using the Apple Intelligence feature and they will have to be using an iPhone 15 Pro or iPhone 15 Pro Max, or one of the four new models making up the iPhone 16 line. Some eagerly anticipated AI features, including the ability to create custom emoji, and those tied to virtual digital assistant Siri, might not be available until 2025.
Once Apple has released all of Apple Intelligence, Neil Shah, partner at Counterpoint Research, spoke on CNBC and said that Apple is going to want to help subsidize what is an expensive investment in artificial intelligence by asking its customers to pay $10 to $20 each month for premium Apple Intelligence features. Shah says that this monthly charge could be tied into Apple One, its bundle of services.
With the iOS 18.1 Developer Beta, certain iPhone users in the U.S. can summarize webpages on Safari. | Image credit-PhoneArena
Also interviewed on CNBC was CCS Insight's chief of research Ben Wood who has pointed out that Apple is one of the few companies in the connected devices industry that has successfully developed a way to monetize its Services unit. As a result, it would make sense to see Apple charge for some Apple Intelligence features.
"Apple is one of the few connected devices companies that has successfully monetized the value-added services it offers. 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."-Ben Wood, chief of research CCS Insight
As it is, Apple expects to see a large number of iPhone users with a model that doesn't support Apple Intelligence, to upgrade to a new iPhone 16 phone starting next month. Apple has admitted that an iPhone needs to have 8GB of RAM in order to use Apple Intelligence. That happens to be the amount of memory in the iPhone 15 Pro, iPhone 15 Pro Max, and all four upcoming iPhone 16 series models. Anyone with an iPhone 15, iPhone 15 Plus, or older who wants Apple Intelligence will have to upgrade to at least an iPhone 15 Pro.
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