Apple Intelligence is set to debut on iPhones, iPads, and Macs later this summer. While the core features showcased at WWDC 2024 will be free, Bloomberg’s Mark Gurman suggests Apple is considering a paid subscription tier, potentially called “Apple Intelligence+,” offering enhanced functionality for a monthly fee, similar to iCloud’s pricing model.
Apple faces the challenge of sustained device longevity. Older devices remain compatible with the latest operating systems, like iOS 11 supporting Apple Intelligence with the release of iOS 18, iPadOS 18, and macOS Sierra. This, coupled with incremental design changes and economic pressures, makes persuading consumers to upgrade more difficult. Consequently, Apple is exploring software subscriptions to diversify revenue.
Apple showing the different devices that Apple Intelligence works on at the Worldwide Developers Conference (WWDC) 2024.
This move aligns with Apple’s strategy of partnering with AI model providers like Anthropic and Google, potentially including Chinese market players, while excluding Meta, and taking a cut of their subscription fees. Offering premium Apple Intelligence features through a paid tier mirrors this approach, broadening income streams and reducing reliance on hardware sales cycles.
This doesn’t mean hardware upgrades become obsolete. Gurman highlights that features like Game Mode and iPhone Mirroring require newer hardware, even if older Macs can run macOS Sierra. Furthermore, Apple has confirmed that an M1 processor or newer is necessary for the new AI features.
Apple’s potential subscription model details remain undisclosed, including specific features, pricing, and implementation. However, this strategy reflects a broader trend in the tech industry, balancing free services with premium offerings for enhanced user experiences and diversified revenue generation.
This dual approach allows Apple to cater to a wider user base while providing premium features for those seeking advanced capabilities. The free tier ensures accessibility, while the potential paid subscription unlocks additional functionality, potentially including enhanced processing power, exclusive AI models, or prioritized access.
The subscription model could also offer benefits for developers, potentially providing access to advanced APIs or integration tools, further enhancing the Apple Intelligence ecosystem. This model aligns with Apple’s focus on user privacy and data security, allowing for greater control over user data and personalized experiences. Further details are expected as Apple Intelligence’s launch approaches.
