Two industry analysts have recently weighed in on the potential subscription costs for accessing advanced Apple Intelligence features, suggesting that Apple may charge users between US$10 and US$20 (~S$13 to S$27) per month.
Nei Shah, a partner at Counterpoint Research, shared his insights with CNBC, indicating that Apple is likely to introduce a separate monthly fee for its more advanced Apple Intelligence features. According to Shah, Apple will pass on to its users the significant investment required for AI development.
Apple could bundle AI with existing services
Beyond charging a standalone fee for Apple Intelligence, Shah mentioned that Apple could include these features in its existing Apple One bundles. Launched in 2020, Apple One allows users to subscribe to multiple Apple services at a discounted rate. Currently, the bundle includes iCloud+, Apple TV+, Apple Music, and Apple Arcade and is priced at S$23.95 per month for individuals and S$29.95 per month for families in Singapore.
Adding Apple Intelligence to this bundle could provide a more cost-effective way for users to access these advanced features while also allowing Apple to enhance the value of its existing subscription offerings.
Industry experts predict premium pricing
Ben Wood, chief of research at CCS Insight, echoed Shah’s views. Wood noted that Apple has a history of charging a premium for access to advanced features, and Apple Intelligence is likely to follow this trend. Given Apple’s track record, users should expect to pay extra for the latest and most sophisticated AI capabilities.
Bloomberg reported in July that Apple’s long-term plan involves monetising Apple Intelligence by introducing premium features requiring a monthly subscription. However, some relief exists for users concerned about additional costs. A recent Bloomberg report suggests that Apple may not begin charging for these AI features until 2027. This timeline reflects the time Apple needs to fully develop and refine these products before they can be offered to consumers at a premium.
AI could become a significant revenue stream
Investment firm Wedbush has projected that Apple Intelligence could generate around US$10 billion in annual revenue once fully implemented. With the market for hardware upgrades slowing and iPhone sales showing signs of stagnation, Apple is increasingly looking to its services and subscriptions to drive revenue and maintain profitability.
In this evolving landscape, Apple Intelligence is poised to become a key component of the company’s growth strategy, providing both innovative features for users and a significant new revenue stream.
