Apple Intelligence Could Boost Tech Giant's Services Revenue, Says Analyst. Here's Why.
Apple plans to roll out its new AI system, Apple Intelligence, later this year. It will enhance Siri and automatically generate emails and images. Analysts say Apple could charge up to $20 per month for some advanced Apple Intelligence features as part of its existing Apple One subscription bundle. Developing advanced AI is expensive, so passing some costs to consumers makes business sense for Apple's lucrative services segment. Other tech firms like OpenAI and Microsoft already charge for more powerful AI tools so that Apple setting fees wouldn't be unusual. Locking customers into personalized Apple Intelligence could encourage longer-term loyalty and service revenue for Apple.
Category
🗞
NewsTranscript
00:00It's Benzinga, and here's what's on the block.
00:03Apple plans to roll out its new AI system, Apple Intelligence, later this year.
00:07It will enhance Siri and automatically generate emails and images.
00:11Analysts say Apple could charge up to $20 per month for some advanced Apple Intelligence
00:15features as part of its existing Apple One subscription bundle.
00:19Developing advanced AI is expensive, so passing some costs to consumers makes business sense
00:24for Apple's lucrative services segment.
00:26Other tech firms like OpenAI and Microsoft already charge for more powerful AI tools,
00:31so Apple's setting fees wouldn't be unusual.
00:34Locking customers into personalized Apple Intelligence could encourage longer-term loyalty
00:38and services revenue for Apple.
00:40For all things money, visit Benzinga.com.