Analysts predict that Apple Intelligence will cost $20 USD monthly for full use of all of its features. Now before you scoff at the idea and say that you knew this was coming, this report has not been confirmed by the iPhone maker. Neil Shah, a partner at Counterpoint Research, told CNBC that considering Apple’s strategy with the Apple One subscription model which has a $19.95 monthly fee, an Apple Intelligence subscription could cost between $10 USD to $20 USD. Apple might also find a way to combine the Apple Intelligence fee with Apple One.
The prediction has us clutching at our pearls at the thought of the company charging such a high price for a service that most other smartphone makers are providing for free—for now—but Apple is no stranger to monetizing every service it comes up with and convincing its users that it is worth it.
Would You Pay a $20 Monthly Fee for Apple Intelligence?
AI is the name of the game but we’re not talking about Artificial Intelligence. Or we are talking about it but in terms of the rebranded Apple Intelligence. The service was formally introduced on June 10, during the WWDC 2024 Apple event, and ever since then, consumers have been excited about the possibility of AI finally coming to the iPhone.
The company has been vague about when they will begin to roll it out but reports suggest some initial features might arrive with the iOS 18.1 update in October. Apple Intelligence predictions also report that a bigger chunk of its features will drop with the iOS 18.4 update in spring 2025, and then continue with its reveal over time.
Apple has made a lot of big promises about what their AI services will be able to provide. Its writing tools will provide a big boost to casual and professional writers who need to write a professional email or summarize a lecture into notes. You can turn sketches into images, create Genmojis, create memories from your photos app, and edit your images with ease. With onscreen awareness, Siri is also going to get much better and work across apps more efficiently than ever before.
Now that we think about it, the app doesn’t promise features that are any more impressive than the AI features Google and Samsung are offering up. Despite the brief moment of basking in the superiority of Android, those services might be at risk of relying on a subscription model too. Samsung has expressed that the Galaxy AI features will remain free until 2025, which means all AI features in the future could very well include a paywall.
Image: Apple Intelligence
Would the Apple Intelligence Subscription Model Really Work?
According to the analyst, the $20 monthly fee for accessing Apple Intelligence would be a very natural course of action for the tech company. The costs of running AI services can be quite high and any chance to offload that onto someone else, preferably the customer, can be a solution worth exploring.
No other smartphone brand has struggled to monetize its software and “premium” features as well as Apple has, primarily because of its marketing and its tendency to build everything in-house. Samsung runs on software from Google so it’s not as easy for them to sell exclusive services, however, its AI might give it the opportunity it’s been waiting for. The monthly fee rumors could have been dismissed if it was about any other company, but with Apple, it does appear more likely that a subscription fee is imminent.
the rumor theory paints a picture of Apple slowly introducing a subscription model for Apple Intelligence, using a mix of exclusivity, integration with other services, and continuous updates to entice users into paying for what they initially thought was a free service. pic.twitter.com/0KyITaBf9n
— iPhone 15 feelings (@ifinchxph) August 9, 2024
Before anyone panics, Apple Intelligence’s $20 USD bill most likely won’t start racking on day one. Just like Samsung, the company will likely begin with a free model to allow users to get familiar with the convenience of having AI around as they gather feedback and perfect the many elements of the tool. After a year or two of free service, the more exclusive features will possibly be locked away until you pay up. It’s a strategy that could work. Software companies that exclusively work on AI already have tools that require a fee to access so the Apple Intelligence subscription model won’t be too different.
The most interesting element of this conversation right now comes back to how these companies plan to sell their smartphones if their main selling point comes with an additional fee. The flagship smartphones that are being released all use AI to market their product with little else to offer.
Most of these phones are unbelievably expensive already, and at some point, users will get tired of spending excessively on things they don’t really need. The performance of the Humane AI Pin and the Apple Vision Pro are prime examples of that. However Apple chooses to roll out its Apple Intelligence subscription plan, some caution is necessary.