This year’s marketing efforts from Apple prominently feature “Apple Intelligence,” a comprehensive suite of AI functionalities unveiled alongside the latest operating systems: iOS 18, iPadOS 18, and macOS Sequoia. While initially offered free of charge, a recent report by Bloomberg’s Mark Gurman, a highly respected source for Apple-related information, suggests a potential future shift towards a tiered service model.
The Envisioned Tiered Structure: Free Core Functionality and Premium “Apple Intelligence+”
Gurman posits the possibility of an “Apple Intelligence+” subscription service, analogous to existing offerings like Apple Music and iCloud+. This premium tier would unlock the full spectrum of AI capabilities on compatible Apple devices,including iPhones (likely starting with iPhone 15 Pro and later models), iPads (presumably requiring M-series chips), and Macs. A core set of basic functionalities, however, would presumably remain accessible free of charge.
Addressing Declining Device Upgrade Rates: A Focus on Recurring Revenue
This potential shift in strategy is believed to be a response to observed trends in declining device upgrade cycles amongst consumers. By offering advanced AI features through a subscription model, Apple would aim to cultivate a consistent revenue stream supplementary to traditional device sales.
Revenue Sharing with Integrated AI Partners: A Potential Expansion of the App Store Model
Gurman further suggests that Apple might implement a revenue-sharing mechanism with AI partners incorporated within the Apple ecosystem. This approach would potentially mirror the existing App Store model, where Apple receives a commission on subscriptions acquired through the platform (excluding the situation in the European Union).
Implications for Apple’s Future Revenue Streams: A Subscription-Centric Landscape?
This report offers valuable insights into Apple’s evolving revenue strategy. The potential implementation of a tiered “Apple Intelligence” service could further contribute to the growing prevalence of subscription models, potentially impacting consumer behavior and preferences.
