Apple's Free AI Strategy: Tim Cook Reveals Why Apple Won't Charge for AI Features

Here's Why Apple Has Never Had Plans to Charge for AI Features, as per Tim Cook

First previewed at WWDC 2024, Apple has rolled out two servings of Apple Intelligence features with iOS 18.1 and iOS 18.2 updates. In today's world, where every company plans to monetize its AI services, Apple took a unique stance in the AI league by offering its AI features for free. When the Apple Intelligence system was in the works, several people speculated that Apple might ask users to pay for its AI features in the future. Thankfully, it didn't happen. Apple's CEO Tim Cook recently mentioned that charging for AI features has never been on the table. In a recent interview with WIRED, Tim Cook talks about how Apple sees AI as a foundational technology. When Steven Levy at WIRED asked Tim Cook "Some companies charge for AI-enhanced services. Did you consider that?". Tim Cook replied: "We never talked about charging for it. We view it sort of like multitouch, which enabled the smartphone revolution and the modern tablet." The answer is great, and the reasoning is even more interesting. Cook described AI as a foundational technology, comparable to innovations like multitouch and beyond. This highlights the giant's strategy of integrating cutting-edge features into the Apple ecosystem without putting additional charges on the user. This amazing statement directly from the CEO differentiates Apple from its AI competitors. If the user has already invested in Apple's hardware, he doesn't need to pay an additional amount to use new features. Apple's AI strategy is deeply tied to its long-followed hardware-first business model. Unlike other players in the AI space who lock their services behind paywalls and subscriptions, Apple has embedded its AI system right into the ecosystem. Of course, users must have Apple Intelligence-compatible devices to enjoy the AI-powered features. This clever strategy would help boost hardware sales, particularly the iPhone, which is the biggest moneymaker in Apple's total revenue. When multitouch technology first debuted on the iPhone, it was offered as a built-in feature, but it was exclusively linked to the premium, high-end device. The tech titan applied the same strategy with Apple Intelligence. Apple won't charge you for AI, but you have to invest in a compatible iPhone, iPad, or Mac to use those AI-driven services. So, unlike other AI players, Apple has built its biggest business around the hardware. So, yes, Apple Intelligence is free to use as a part of iOS 18.1 and iOS 18.2 updates. That's only because Apple first sold you a compatible iPhone, iPad, or Mac. In case you don't have one, you'll indirectly pay for AI by investing in compatible hardware. Apple can afford to offer AI for free because it's generating crazy billions by selling us its hardware, especially the iPhones. Cook's statements again shed some light on Apple's clever business model that prioritizes innovation without any mandatory extra costs on the users, as the giant claims. What do you think about Tim Cook's statement? Tell us in the comments below.

Tim Cook says Apple 'never talked about' charging for AI, here's why - 9to5Mac

Over the past few months, two big waves of Apple Intelligence features have debuted via iOS 18.1 and iOS 18.2. While some have speculated Apple is planning paid AI services in the future, Apple's CEO Tim Cook recently said that charging has never even been discussed. Here's why. Steven Levy at WIRED interviewed Tim Cook recently about AI and more. One key quote has stuck with me since that interview was published earlier this month. Levy: Some companies charge for AI-enhanced services. Did you consider that? Cook: We never talked about charging for it. We view it sort of like multitouch, which enabled the smartphone revolution and the modern tablet. Straight from the CEO himself, Apple reportedly 'never talked about' charging for AI. His reasoning is interesting, positioning AI as a sort of fundamental new technology akin to multitouch and more. But it also highlights a big difference between Apple and its AI competitors. That difference, I think, points to an even more important reason why monetization wasn't on the table for Apple. When multitouch debuted on the first iPhone, it was technically a free feature, yes. But it was inseparably tied to what was then a very expensive new product. Apple Intelligence is very similar. Apple isn't charging for AI, but you also can't use Apple Intelligence unless you first buy a compatible iPhone, iPad, or Mac. Unlike the vast majority of other AI players, Apple has built its primary business around hardware. The company does have an ever-growing services business, but the bulk of its revenue is still tied to hardware. And within that hardware bucket, nothing compares to Apple's iPhone revenue. So yes, Apple Intelligence is technically free as part of iOS 18.1 and iOS 18.2. But that's only because Apple first sold you an iPhone. And Tim Cook knows that very well. Apple can give AI away, at no extra charge, because it's doing just fine selling us all new iPhones. What do you think of Tim Cook's statement? Let us know in the comments.