According to a new report from Bloomberg, Apple will reportedly shift to a subscription model for AI features. In this regard, Bloomberg says that Apple Intelligence—the company’s AI features—will be segregated into two tiers. One of the tiers has no charge, but there are restricted features, the other—the probable Apple Intelligence+—will give all AI functionalities with a fee likely attached.
This strategy will offset the trend of customers replacing devices less often. With subscription services, Apple can offset weakening sales of devices through an overall shift in revenue generation to services. In this approach, Apple Intelligence is going to be very vital.
Furthermore, along with the device shipments, Apple will have a share of the subscription money from each AI partner to be integrated into them. In this way, the company will hugely benefit every time someone subscribes to third-party services from its App Store, excluding locations—like the EU—where the regulations vary.
While these are presently unconfirmed rumors, Gurman enjoys a very credible history of early peeks inside Apple’s plans. With other smart device makers doing the same, it wouldn’t come as a surprise to actually see this model in play.
For example, Samsung recently announced that its first-party Galaxy AI features will be free until 2025. A company representative later clarified the addendum, saying it was classified for transparency on their part, and nothing has actually been decided in terms of a paid subscription yet.
How this probable subscription model is going to be implemented by Apple itself, and what users’ behavior towards using this will be, is yet to be observed. Clearly, though, the company won’t stop building new ways of generating revenue to stay ahead in the fast-moving AI space.
