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apple Analysts told CNBC the company may charge users up to $20 for advanced artificial intelligence features as it looks to boost growth in its lucrative services business.
Cupertino giant plans to launch Apple informationits upcoming artificial intelligence system will be available on some of its devices later this year.
When Apple announced its artificial intelligence system in June, the company promised an enhanced Siri voice assistant, as well as features such as automated email and image generation. While these features will be rolled out slowly, China and other regions and Europe initially not granted accessAnalysts say Apple may charge subscription fees for more premium apps.
Neil Shah, partner at Counterpoint Research, said Artificial intelligence is expensive to invest in Apple hopes to pass this cost on to users.
“Software and services make it more profitable for Apple to deliver it through the Apple One subscription model,” Shah told CNBC last week.
Apple One costs $19.95 per month and gives users access to a variety of Apple services, including Apple Music.
Shah said Apple may charge $10 to $20 for Apple Intelligence, which may be included as part of Apple One to provide more advanced AI capabilities.
Apple introduces service department June quarter $24.2 billionwhich makes it unique as many other hardware companies have yet to successfully monetize software.
“Apple is one of the few connected device companies that has successfully monetized the value-added services it provides,” Ben Wood, director of research at CCS Insight, told CNBC this week.
“Therefore, it sets a precedent for users to pay for better services. On this basis, it cannot be ruled out that Apple may choose to charge for more advanced features in its Apple Intelligence product. “
Wood added that Apple Smart could provide the US giant with an option to launch bundled subscriptions with various services at a single price.
“But equally, Apple is not willing to dilute the revenue from a single product subscription,” he said.
It’s not uncommon for technology companies to charge for their artificial intelligence products. For example, OpenAI charges a subscription fee for more advanced ChatGPT features. Microsoft Its AI Copilot tool is free.
Apple’s biggest rival Samsung has begun rolling out an artificial intelligence service called Galaxy AI, but is still considering various revenue models for its software. The action boss told CNBC last month.
Shah said that for Apple, artificial intelligence gives the company the opportunity to further lock in its already loyal customer base because Apple Intelligence will learn user behavior and become more personal.
“The beauty of artificial intelligence is that as you use it more and more, it learns about you, and you become tethered to the model itself because you can’t bring your model from Apple to Android,” Sha said. Ah said.
“That’s where you start using it more and more, you get more and more accustomed to it, and that’s where Apple monetizes it.”
