Recently unveiled, Apple Intelligence is set to introduce its most thrilling new features with the upcoming iOS 18.2 release next month, all at no additional cost. While analysts and investors eagerly await the potential boost to iPhone 16 sales, this week’s beta release revealed an innovative method for Apple to profit from its AI initiatives.
Revenue from Services and the iOS 18.2 Revelation
Apple has long prioritized services revenue when communicating with investors, and it’s a valid focus. As the hardware upgrade cycle extends, services remain a consistently growing segment for Apple.
This has sparked discussions about how future features of Apple Intelligence could further increase this already substantial services category.
There are two main reasons for this speculation:
- Apple’s demonstrated success in the services space, and
- Most rival firms offer paid tiers for their AI products.
However, while Apple might eventually introduce charges for certain AI features, the latest iOS 18.2 beta demonstrates a clever way to monetize Apple Intelligence without direct fees.
Within the Settings app of iOS 18.2, users will find an option labeled ‘Upgrade to ChatGPT Plus’.
In essence, Apple is marketing a subscription service offered by its partner, OpenAI, from which it will likely receive a share.
This strategy is quite ingenious.
Partnerships with Third-party AI Companies Create Win-Win Scenarios
The integration of ChatGPT with Siri and Apple’s writing applications is an exciting enhancement for iOS 18.2, available at no cost to users.
In addition, Apple stands to profit from offering ChatGPT Plus as an optional upgrade, allowing users to perceive Apple’s offerings as complimentary while OpenAI charges for its service.
Envision what the future may hold as Apple incorporates additional AI systems into iOS. The company has already indicated Google Gemini as a potential collaborator.
For those using the iOS 18.2 beta, the configuration area for ChatGPT can be found under ‘Extensions.’
Currently, ChatGPT is the sole entry, but it’s clear that Apple intends to incorporate more options down the line.
When Apple rolls out support for Gemini, it could provide users with the opportunity to access Gemini Advanced as a subscription upgrade. And this is just the beginning.
As more providers join Apple’s ecosystem, the company could capture a portion of the revenue from their subscription plans. It might look like this:
- Third-party AI companies provide premium plans
- Apple gains benefits while maintaining Apple Intelligence as a free service
Users of iPhone, iPad, and Mac will continue to access Apple Intelligence without cost.
If appealing features are hidden behind a paywall, users can either opt to pay, giving Apple a share in profit, or they may choose to forgo the upgrade entirely.
In either scenario, Apple avoids being seen as the villain. Meanwhile, fresh service revenue will gradually enrich the company’s coffers.
What are your thoughts on Apple’s revenue approach regarding Apple Intelligence? Share your opinions in the comments.
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