Danish Kapoor
Danish Kapoor

Paid subscription package on the agenda for Apple Intelligence

Apple is building much of its marketing strategy this year around artificial intelligence, or Apple Intelligence. The company unveiled its suite of AI features in June with iOS 18, iPadOS 18, and macOS Sequoia. Apple Intelligence will remain in beta after those operating systems are released in the fall. However, Apple Intelligence will be available for free on devices like the iPhone 15 Pro, Pro Max, and likely the iPhone 16 series. On the Mac and iPad side, users will need one of Apple’s M-series processors.

But Apple’s AI features may not be free forever, according to Bloomberg’s Mark Gurman. Known for his accurate reporting on Apple, Gurman believes that in the near future, we could see Apple Intelligence split into two tiers.

One of those tiers will continue to be free, but it will offer a limited feature set. Apple users will need to upgrade to a paid tier, rumored to be called Apple Intelligence+, to take advantage of the AI’s full capabilities.

Apple Intelligence is a key part of Apple’s future strategy

This will be a subscription plan like all other Apple “+” services, and will allow Apple to buck the recent trend of people replacing their devices much later than before. The company is expected to make less money from selling devices and more from services, and Apple Intelligence appears to be a key part of that strategy.

Moreover, Apple plans to take a cut of the subscription revenue from each AI partner it integrates into its devices, similar to the cut it takes from subscriptions to third-party services through the App Store.

This news provides an interesting glimpse into how Apple sees its future revenue stream, and it’s possible that tougher times lie ahead for those who are tired of paying monthly subscription fees.

Danish Kapoor