BackApple considers subscription model for ‘Apple Intelligence’: Report
Apple plans to offer advanced AI capabilities for free to compatible device users initially. However, Bloomberg's Mark Gurman reports a potential shift to a subscription model with ‘Apple Intelligence+,’ offering exclusive AI features for a monthly fee.
PremiumCalifornia-based tech giant Apple is poised to expand its revenue streams with the introduction of Apple Intelligence, a suite of artificial intelligence (AI) features unveiled at the recent Worldwide Developers Conference (WWDC) 2024. This new initiative includes enhancements such as AI-powered Siri, Writing Tools embedded across applications, and an innovative Image Playground for creative image generation.
While Apple has confirmed that these advanced AI capabilities will initially be available free of charge to users of compatible devices, reports suggest a potential shift towards a subscription-based model in the future. According to insights from Bloomberg's Mark Gurman in the Power On newsletter, Apple may introduce a premium tier called "Apple Intelligence+" that offers exclusive AI features for a monthly fee, akin to its existing subscription services like iCloud and Apple Music.
The move comes amid a strategic pivot by Apple to bolster its software and services offerings amidst a plateau in hardware sales growth. Factors contributing to this shift include slower device upgrade cycles, less pronounced hardware innovation, and increased durability of devices.
Apple's partnership with OpenAI, which reportedly includes revenue-sharing from AI subscription services, underscores its commitment to leveraging AI to drive future revenue growth. Additionally, the introduction of Private Cloud Compute promises to extend AI capabilities to older devices by utilizing Apple's cloud servers for computational tasks.
As Apple reportedly prepares to roll out Apple Intelligence initially on the iPhone 15 Pro and iPhone 15 Pro Max, industry watchers anticipate further developments in AI-driven technologies that could reshape how consumers interact with their devices.
Meanwhile, the tech giant has officially designated three of its iconic products as "vintage." The updated vintage and obsolete products list now includes the iPhone X, the first-generation AirPods, and the original HomePod, according to reports from MacRumors.
In Apple's classification, a product earns the vintage label if it has been off the market for more than five years but less than seven years. Once a product surpasses the seven-year mark since its discontinuation, it is categorized as obsolete. Vintage products may still qualify for repairs, subject to parts availability, whereas obsolete products are no longer supported for hardware services.
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