Apple Intelligence's AI Features in iOS 18 and New iPhones Expected to Be Priced at $20

By Thea Felicity

Aug 08, 2024 08:20 AM EDT

A man communicates through his iPhone 15 Pro Max as he stands outside the new Apple store at the Tun Razak Exchange (TRX) on June 20, 2024, in Kuala Lumpur, Malaysia.
(Photo : Annice Lyn/Getty Images)

Apple is considering charging users up to $20 for its upcoming artificial intelligence features called 'Apple Intelligence', according to analysts who spoke to CNBC. This potential fee is also expected to be part of the company's strategy to boost its services division, which has been a major revenue driver.

Announced in June, VCPost shared that Apple Intelligence will be enhancing the capabilities of Apple's iPhone 15 Pro and up devices by offering advanced features such as an improved voice assistant from Siri and automated emails and images that users can generate.

However, these features will be rolled out gradually, with regions like China and Europe initially not receiving access.

Apple's AI Sector

Neil Shah, a partner at Counterpoint Research, stated that investing in AI technology is costly, and Apple is likely to pass these expenses onto users through the existing Apple One subscription model, which costs $19.95 per month and includes services like Apple Music.

Apple's services division saw a revenue of $24.2 billion in the June quarter, showing the company's success in monetizing software and services.

Analysts noted that Apple's track record in monetizing value-added services will set a precedent for charging for premium AI features. Apple could also charge for advanced features within Apple Intelligence, should it go well.

Apple would not be the first to do this in the AI sector as companies like OpenAI and Microsoft already charge for advanced AI features, and Samsung is exploring similar revenue models for its Galaxy AI services.

For the company, AI presents an opportunity to deepen user engagement and loyalty. Shah explained that the more users interact with Apple Intelligence, the more personalized it becomes, creating a strong incentive for users to remain within the Apple ecosystem.

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