Apple Considers $20 Monthly Fee for Premium AI Features

Apple could charge up to $20 per month for access to Apple Intelligence

With its Siri overhaul, image-generation abilities, and photo-editing tools, Apple Intelligence - Apple's upcoming suite of AI features - could be more exciting than iOS 18 itself, but according to one report it might also be rather expensive. According to Neil Shah, a partner at Counterpoint Research, speaking to CNBC, Apple Intelligence probably won't be a free offering, with Apple charging $10-$20 (around £8-£16 / AU$15-AU$30) for some of the more advanced features within Apple Intelligence. Shah didn't specify which features might be charged and which might be free, but we can imagine that perhaps the upgraded version of Siri or the ChatGPT integration would come at a cost. Shah also pointed out that AI would give Apple a chance to further lock its customer base into Apple products, since Apple Intelligence can learn from a user's behavior over time, becoming more personalized, and you wouldn't be able to bring that model with you from iOS to Android. As it becomes more personalized, you'd likely use it more too, becoming more reliant on it, and therefore happier to pay. Of course, Apple would have to get past the initial hurdle of convincing people to sign up in the first place, but it's easy to imagine that it might provide Apple Intelligence for free for a period of time with purchases of an iPhone 16 or other devices. All of this is really just speculation though, and we likely won't know Apple's plans for Apple Intelligence until the service launches, which it probably won't until October. Before that, there's the iPhone 16 line itself to look forward to, with a September launch likely, and TechRadar will cover all of these announcements in full as they happen.

Some Apple Intelligence features could cost up to $20/month - analysts

Two analysts raised the monetization prospect when speaking to CNBC. Neil Shah, partner at Counterpoint Research, said investment in AI is expensive and Apple will want to pass that cost onto its users [...] Shah said Apple could charge between $10 and $20 for Apple Intelligence, potentially as part of Apple One, for more premium AI features [...] "Apple is one of the few connected devices companies that has successfully monetized the value-added services it offers," Ben Wood, chief of research at CCS Insight, told CNBC this week. "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." They suggest that Apple might follow the model used by OpenAI and Microsoft: Free access to a limited number of AI features, with a subscription required to use the complete set. There is exactly zero prospect of Apple charging for any of the Apple Intelligence features rolling out this year, nor the new Siri features expected by early next year. If that had been the plan, the company would have revealed it before now. The possibility of Apple choosing to introduce a paid Apple Intelligence tier down the road can't be ruled out, however. Service revenue has long been an important part of the company's revenue stream, and Apple continues to seek new subscription offerings. Ultimately, Apple will need to find a balance between included AI features which generate hardware sales, and optional features for which customers would be willing to pay a subscription.

Apple Intelligence could get a $20 Plus version -- what we know

Recent speculations have given us our best idea yet of how much Apple Intelligence might cost if Apple decides to lock some features behind a subscription. Last month Bloomberg's Mark Gurman stated that while Apple Intelligence might be free at the start, there is a long-term plan to implement a form of "Apple Intelligence+" which will come with extra features that users will have to pay monthly fees for. In a recent interview with CNBC, Neil Shah, a partner at Counterpoint Research, said that Apple will want to pass the cost of AI development to the customer. Shah told CNBC, "Software and services makes it more lucrative for Apple to pass it on with the Apple One subscription model." For reference, Apple One currently costs $19.95 and offers access to Apple Arcade and Apple TV alongside other features. Shah speculated that Apple could add $10 and $20 for Apple Intelligence. However, at this point, that price point is nothing but speculation. One issue Apple will face when introducing a subscription is that most iPhones will not run Apple Intelligence. This would mean that only users with one of the iPhone 15 pro series, or the eventual iPhone 16 series, will actually have to pay. Apple will likely be hoping that it will be able to convince enough people to upgrade to help cover the eventual cost. However, it isn't the only company that plans to lock certain features behind a subscription model, as Samsung is still considering various revenue sources for Galaxy AI. Google also locks some Gemini features behind its Google One subscription plan and this could be a model for how Apple approaches paid-for Apple Intelligence. While we don't know what the subscription features will be, Apple Intelligence has plenty to offer. The biggest enhancements that have been announced are focused on Siri. Apple has stated that the finished version of the new app will allow Siri to maintain conversation context and be aware of what is happening on the screen. However, our experience with Siri in the current beta does leave some things to be desired. As stated, Apple won't be the first to lock certain AI features behind a paywall, and Apple is well known for being relatively fair when pricing its subscription services. However, it might be a turn-off for anyone already paying a lot of money to buy a new phone to use the features in the first place.

Here's how much Apple may charge for its Apple Intelligence - Times of India

Apple announced its AI system Apple Intelligence (AI) in June this year. The company is expected to bring AI features to some of its devices later this year. Ahead of the rollout, analysts predict that Apple may charge a subscription for using advanced features of Apple Intelligence, says a CNBC report. According to it, the iPhone maker may charge its users up to $20 (approx.Rs 1,600). The report quotes Neil Shah, partner at Counterpoint Research, who said investment in artificial intelligence (AI) is expensive and Apple will want to pass that cost onto its users. He said that Apple could charge between $10 and $20 for Apple Intelligence, potentially as part of Apple One, for more premium AI features The current Apple One subscription costs $19.95 (Rs 195) per month. Apple Music, Apple TV+, Apple Arcade, iCloud+, are some of the services offered under Apple One subscription. In an interview with CNBC last week, Shah said "Software and services makes it more lucrative for Apple to pass it on with the Apple One subscription model,". Ben Wood, chief of research at CCS Insight, told CNBC "Apple is one of the few connected devices companies that has successfully monetized the value-added services it offers,". He added, "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." Apple Intelligence may come to EU In another development, a report by 9to5Mac said that Apple may launch its Apple Intelligence feature for Mac users in the EU with its upcoming software update - iOS 18. The report says that the release notes of the recent beta update suggest that Apple Intelligence features may become available for Mac users in the EU. However, these features may remain blocked from iPhones and iPads in the region. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Would You Subscribe to Apple Intelligence? Analysts Say Some Features Could Cost Up to $20 Per Month

Apple reportedly plans to turn some Apple Intelligence features into paid subscription services, and some analysts believe the company could charge users up to $20 per month for the privilege. Last month, Bloomberg reporter Mark Gurman said that while Apple Intelligence will be free to start, Apple's long-term plan is to launch something like "Apple Intelligence+," with extra features that users pay monthly fees to access, similar to iCloud+. Speaking to CNBC, Counterpoint Research's Neil Shah said Apple could offer the features as part of a modified Apple One subscription, and he believes an additional figure of between $10 and $20 is a realistic possibility. "Software and services makes it more lucrative for Apple to pass it on with the Apple One subscription model," Shah told CNBC in an interview last week. Apple One costs $19.95 a month and gives users access to various Apple services like Apple Music, Apple TV+, Apple Fitness+, additional cloud storage, and more. "Apple is one of the few connected devices companies that has successfully monetized the value-added services it offers," Ben Wood, chief of research at CCS Insight, told CNBC. "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." Wood added that Apple Intelligence could give the company an option to launched a bundled subscription service with various services under a single price, akin to a new Apple One tier. Apple in the June quarter saw a steep increase in services revenue at $24.2 billion, up from $21.2 billion a year ago and a new all-time revenue record. Analysts believe that making its own AI features another services revenue stream could allow Apple to compensate for the slower pace of hardware upgrades and also enable the company to pass the high cost of its investment in AI onto customers. Apple has reportedly started building its own AI servers that use the M2 Ultra chip, and it is said to be developing its own AI server processor using TSMC's 3nm process for use as soon as 2025, which could enhance the performance of its data centers and future AI tools that rely on the cloud. Apple is expected to spend several billion on hardware to support its artificial intelligence development in 2024, according to Apple analyst Ming-Chi Kuo. Kuo said he expects Apple to spend "at least" $620 million on servers in 2023 and $4.75 billion on servers in 2024.

Apple Intelligence's advanced features may cost users $20

Apple could charge its users as much as $20 for using its advanced AI features as the iPhone maker could pass down the steep cost of investing in AI to its users, CNBC reported. OpenAI and Microsoft follow a similar model where users are given free access to a limited number of basic AI features, while a subscription if required if they want the complete range. Apple has announced an upgraded Siri, as well as a host of other features including writing assistants for emails, image generation and personalised emojis as a part of Apple Intelligence. The features are expected to be rolled out gradually region-wise with the launch itself being pushed until October. (For top technology news of the day, subscribe to our tech newsletter Today's Cache) Read Comments

Apple Intelligence's Advanced Features Could Eventually Cost Money, Says Top Analyst, While Rivals Google And Samsung Currently Offer Many Of Their AI Services For Free - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

Apple Inc. AAPL could charge its users up to $20 for its advanced artificial intelligence features, according to a top analyst. The move could further bolster the company's already lucrative services business. What Happened: Apple is gearing up to roll out Apple Intelligence, its new AI system, across some of its devices later this year. The system, announced in June, includes enhanced features for the Siri voice assistant and other generative AI features aimed at enhancing the email and image editing experience, among other things. Neil Shah, a partner at Counterpoint Research, explained that the high cost of AI development could prompt Apple to pass on the expense to its users. "Software and services makes [sic] it more lucrative for Apple to pass it on with the Apple One subscription model," Shah said in an interview with CNBC. Apple One currently costs $19.95 a month and provides access to various Apple services, including Apple Music. The potential introduction of a premium AI feature subscription could further boost Apple's services segment, which generated $24.2 billion in the previous quarter. Alphabet Inc.'s GOOGL GOOG Google, Apple's rival, offers many AI features in its Pixel phones for free. The Pixel 8 Pro, the first to run Gemini Nano, powers features like Summarize in the Recorder app, Magic Compose for rewriting messages, and Magic Editor in Google Photos for object movement and lighting enhancement. Google also leverages AI to reduce blur and visual noise in photos. It is common for technology companies to charge for their AI services. For instance, OpenAI has a subscription fee for advanced ChatGPT features, and Microsoft Corp. MSFT charges for its AI Copilot tool. Another Apple rival, Samsung Electronics Co Ltd., also offers AI services with its latest flagship smartphones, but it has yet to charge a fee for them. These features will be gradually rolled out, with some regions possibly being charged a subscription fee for the more advanced apps. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: The tech industry has been witnessing a surge in AI-related developments. At the Google I/O event in May, Google announced several AI-related features, including AI Overviews, a revamped version of Search Generative Experiences designed for complex questions. Apple's potential AI subscription model follows its rivals' moves. In March, Google introduced a new bundle for its subscribers in the UK, adding value to its cloud storage plans with the inclusion of Nest Aware and Fitbit Premium. Recently, a Reddit user found pre-prompt instructions embedded in Apple's developer beta for macOS 15.1. These instructions offer a rare glimpse into the backend of Apple's AI features, such as the Smart Reply feature in Apple Mail and the Memories feature in Apple Photos. Read Next: Elon Musk Pledges To Probe Restrictions On Automated Posts After National Weather Service's Complaint About Not Being Able To Post Warnings On X Photo courtesy: Apple This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Analysts reckon Apple could charge extra for Apple Intelligence features

Analysts are spitballing that Apple could charge $20 per month for Apple Intelligence -- but the problem is, in the short term, this isn't based on anything and is mostly wishful analyst thinking. This is the kind of analyst predictions that are not technically incorrect, and might come true in some form in the future on an infinite timeline -- but they're also entirely wrong for the timetable that matters. Apple could charge $20 for parts of Apple Intelligence, just as the company could launch a range of furniture. According to stock analysts who always seem to ask the same questions over and over at the earnings conference calls speaking to CNBC, it's coming real soon. Specifically, assorted analysts have pointed out to the broadcaster that Apple charges for services, and that AI costs money. Apple prefers to make money instead of spending it -- this is the quality of analysis on show here. Anyway, the stock analysts postulate that Apple could pass on that AI cost to its subscribers. Plus, ChatGPT charges for more advanced AI features, and so does Microsoft, therefore Apple could, too. Also, reportedly Samsung is said to be "considering various revenue models" for its Galaxy AI. But Apple isn't charging yet. It's hard to give away something like Apple Intelligence for free and then start charging for it later. For instance, Apple would find it very difficult to turn around and say the Writing Tools feature now requires a subscription. It would be easier if it later introduced some wholly new feature, but none of these analysts have the remotest clue what that could be. Given that the analysts are not wrong that AI costs money and that, startlingly, Apple likes earning cash, there is already one thing that might fit as a chargeable extra. It's that Apple has already said it is working with ChatGPT now, but it's going to add additional partners. Those partners, such as Google Gemini, could also be fully baked into the system like ChatGPT is. But they, and other AI tools, could be offered through a new App Store. That's been rumored before, and it is a better guess than just saying Apple will want to pass on costs to users. But none of this is going to happen this year or next. Right now, Apple has a lot to do getting Apple Intelligence right, and getting it established, before trying to build on it. So for now, this is just stock analysts, without any real basis in fact, hoping that Apple makes a little bit more money for software, because then the stock price might go up.

Here's how much Apple Intelligence features might cost for users

It is also speculated that Apple Intelligence might come to the Apple Vision Pro later. The Apple iOS 18.1 developer beta has been rolled out with some Apple Intelligence features for developers. However, it is expected to be available to users later this year. Ahead of that, a new report has come up with the expected price of the Apple Intelligence features. Notably, it mentions that the Apple Intelligence features might be available to users at around $20. Here are some more details about its expected pricing and features. While Apple plans to bring Apple Intelligence, which includes a suite of AI-based features, to its devices later this year, a CNBC report says that it might be priced between $10 and $20, which is approximately between Rs 800 and Rs 1,700. However, it is worth noting that the pricing details are according to analysts. The company will announce its price once it goes official for users. Notably, Apple Intelligence features like AI call recording and transcriptions, Writing Tools, and enhanced Siri already arrived for developers via the iOS 18.1 beta (22B5007p). You can read about it here. Apple Intelligence is expected to make Siri a more intuitive and capable interface. Along with that, it is also anticipated to bring new tools for users to rewrite, proofread, or summarise their write-ups to enhance their writing skills for iOS users. It also lets users obtain summaries of their audio recordings and emails. This will also allow users to generate and share AI-generated emojis, known as Genmoji. Meanwhile, the Clean Up feature will likely help users erase unwanted people or objects from images. Additionally, Apple Intelligence's Image Wand feature will let iOS users convert sketches into corresponding images within the Notes app. It is also speculated that it might come to the Apple Vision Pro, but not until 2025. Several other AI features are expected to be part of Apple Intelligence, positioning it as a competitor to Samsung Galaxy AI. More details about its release could be coming soon. Stay tuned for more updates regarding the much-anticipated Apple Intelligence.