Apple created quite a stir at the annual Worldwide Developers Conference (WWDC) 2024 with the announcement of Apple Intelligence. Apple calls this innovative "personal intelligence system" and that this will be integrated into Apple's various operating systems, promising to boost productivity, enhance communication and boost privacy. Now, Bloomberg's Mark Gurman has said that Apple Intelligence may not remain free indefinitely.
The tech giant is expected to introduce a subscription-based service for its advanced AI functionalities, possibly named "Apple Intelligence+."
Gurman, famed for his precise reporting on Apple, indicates that although Apple Intelligence will start off as a free service, the company may eventually monetise its advanced features. This approach would be similar to Apple's current model with services such as iCloud, which offers basic features for free while charging a monthly subscription for additional functionalities.
In his Power On newsletter, Gurman has noted Apple's potential shift to a subscription model for Apple Intelligence to the decelerating rate of hardware upgrades. This slowdown has driven Apple to increasingly depend on its services division, which now accounts for more than a quarter of the company's revenue.
For the second quarter of the 2024 fiscal year, Apple reported $90.75 billion in revenue, with the services segment contributing $23.9 billion.
As of now, the iPhone maker is said to to offer its advanced AI features, Apple Intelligence, on the iPhone 15 Pro and iPhone 15 Pro Max, exclusively. While it is anticipated that the upcoming iPhone 16 series will also include these capabilities, there is no official confirmation on this yet.
To recall, Apple Intelligence was officially last month, promising a transformative experience for iPhone, iPad, and Mac users. This innovative system combines the power of generative models with personal context to deliver intelligence that is not only incredibly useful but also highly relevant to individual users. Integrated deeply into iOS 18, iPadOS 18, and macOS Sequoia, Apple Intelligence leverages the formidable capabilities of Apple silicon to understand and create language and images, streamline tasks across apps, and utilise personal context to simplify everyday activities.