A new report by Bloomberg’s Mark Gurman is suggesting that Apple Intelligence may not remain free forever. In his latest Power On newsletter, Gurman says the company’s AI-powered features will likely be divided into two tiers.
One tier will remain free but offer limited features, while the other, likely called Apple Intelligence+, will provide the full range of AI functionalities on devices like iPhone, iPad, and Mac for a subscription fee. This subscription model will resemble other “Plus” services offered by the Cupertino-based tech giant.
According to the Bloomberg writer, this strategy is intended to address the trend of customers upgrading their devices less frequently. By focusing on subscription services, Apple aims to compensate for potential declines in device sales and shift towards generating revenue from services, with Apple Intelligence playing a crucial role.
Gurman adds that Apple plans to take a percentage of the subscription revenue from every AI partner integrated into its devices. This approach is similar to how the company currently earns from subscriptions to third-party services via its App Store, except in regions like the EU where different regulations may apply.
Of course, all of this is but rumours for now, though it should be noted that Gurman has an excellent track record when it comes to early insights on all things Apple. And it wouldn’t be entirely surprising if the company does implement this in the end, and it wasn’t the only smart device manufacturer to consider such a move.
As you may recall, Apple’s closest competitor, Samsung, also noted that its first-party Galaxy AI features will be provided for free until 2025. But when asked to elaborate further on this, a representative told us that the fine print for its AI service was added for the sake of transparency, and no actual plans for a paid subscription has been decided by the company just yet.
(Source: Bloomberg)
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