Apple Intelligence is not set to arrive on iPhones, iPads, and Macs until later this summer, but the company is reportedly planning to charge users a monthly fee for access to certain features, according to Bloomberg’s Mark Gurman.
He notes that while the basic features discussed during the AI system’s reveal at WWDC 2024 will remain free to users, the company is considering eventually implementing a program similar to “Apple Intelligence+” that could offer additional features and functionality for a monthly subscription, similar to what the company already does for iCloud.
Apple has been somewhat constrained by its own success recently. Its devices last longer than ever, and even several release generations later remain capable of running the latest operating systems. iOS 11, for example, will reportedly be able to use Apple Intelligence when it arrives with iOS 18, iPadOS 18, and macOS Sierra.
A New Revenue Stream Through Subscription Models
Combined with fewer significant design changes to the devices themselves recently and an increasingly challenging economy, the company is finding it increasingly difficult to convince consumers to trade in their old gear for the latest offerings. Thus, Apple is looking to diversify its income streams through software subscription models.
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This shouldn’t come as much of a surprise to users. Apple has already disclosed that it plans to take a cut of the subscriptions charged by its upcoming AI model partners, rumored to include Anthropic and Google (as well as those in the Chinese market, though not Meta). So, it’s not a huge departure for the company to consider charging users for premium Apple Intelligence functions.
Doing so would accomplish the same basic effect that Apple is trying to achieve with its growing stable of AI model partners. By diversifying its income streams, just as with recruiting multiple AI partners, Apple gives itself flexibility to pivot if needed and, in this case, reduce the company’s reliance on convincing consumers to buy new $1,400 smartphones every 18 months.
That’s not to say the company won’t still provide users with incentives to upgrade to the latest hardware. As Gurman points out, while seven-year-old Macs will still be able to run the upcoming macOS Sierra, other features like Game Mode and iPhone Mirroring still need newer hardware.
Additionally, the company has already disclosed that your Mac will need an M1 processor or newer to access the new AI features. There’s no word yet on the exact form the potential subscription model could take, what it would offer, or how much it could cost.