Apple Intelligence might become a new revenue stream for the company in the future, according to a recent report. The Cupertino-based tech giant unveiled its suite of artificial intelligence (AI) features, dubbed Apple Intelligence, at the Worldwide Developers Conference (WWDC) 2024. This suite includes AI-powered Siri, writing tools across apps, and image generation features via the Image Playground. Additionally, ChatGPT is being integrated into Apple's operating systems. Currently, these features will be available at no cost, but this could change down the line.
**Apple Intelligence Could Reportedly Introduce a Paid Tier**
Bloomberg's Mark Gurman mentioned in the Power On newsletter that Apple's long-term strategy for Apple Intelligence might involve monetizing it. The report suggests that the company could launch a service called “Apple Intelligence+” in the future, offering premium AI features that require a monthly subscription, similar to its existing iCloud or Apple Music services.
Gurman explained that Apple is exploring additional revenue channels through software and services because of a decline in device sales in recent years. This decline is attributed to the slower pace of hardware innovation, lack of major design changes, and increased device longevity due to more durable materials.
**Apple's AI Revenue Strategy**
According to the report, one way Apple might ensure revenue growth despite slower device upgrade cycles is by focusing on its software-based AI services. The tech giant's deal with OpenAI is said to include a share of the subscription revenue generated from Apple users. Similar clauses might be included in deals with other potential AI partners such as Google and Anthropic.
**Apple Intelligence on Apple Vision Pro**
Despite these speculations, Apple has stated that the AI features will be available for free to those using a compatible device. Notably, only the iPhone 15 Pro and iPhone 15 Pro Max will support Apple Intelligence at launch. The AI features might be extended to older devices through Private Cloud Compute, the company's cloud servers for AI computing, which was also announced at WWDC this year.
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