Counterpoint Research partner Neil Shah said this week, “Software and services make it more lucrative for Apple to pass it on with the Apple One subscription model,” Apple is set to boost its services revenue with the upcoming launch of its new AI system, Apple Intelligence. Due out later this year, this advanced AI aims to improve the Siri voice assistant and add features like automatic email and image creation. Analysts believe Apple might charge between $10 and $20 for these premium features, possibly including this cost in the existing Apple One subscription, which is $19.95 per month and includes services like Apple Music.
Neil Shah points out that developing AI requires a lot of investment, which Apple is likely to pass on to users. This strategy fits with Apple’s broader goal of making more money from its software and services, unlike competitors that mainly focus on hardware. Apple’s services division, which made $24.2 billion last quarter, shows the company’s success in turning software into revenue, a challenge for many rivals.
As Apple rolls out its AI features, the company aims to boost user engagement by offering more personalized experiences. Shah notes that as users interact with Apple Intelligence, the system will adjust to their preferences, encouraging them to keep using it. Unlike other tech giants like OpenAI and Microsoft, which charge separately for advanced AI features, Apple plans to include these features in a single subscription. This approach not only enhances the user experience but also strengthens Apple’s revenue, making it harder for users to switch to competitors.
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