New iOS 'Apple Intelligence' Subscription Fee Up to $20

US Economic Media CNBC Cites Analysts for Outlook

Apple is expected to charge up to $20 in subscription fees for the advanced features of its artificial intelligence (AI) function, 'Apple Intelligence,' to be included in the new operating system for the iPhone.

On the 8th (local time), US economic media CNBC cited analysis from Neil Shah, a partner at market research firm Counterpoint Research, reporting that Apple may impose a fee of $10 to $20 in exchange for providing some differentiated features of Apple Intelligence.

Partner Shah stated, "Because AI investments require significant costs, Apple will likely want to recover some of these expenses from users."

Apple Intelligence is Apple's AI strategy first unveiled at the Worldwide Developers Conference (WWDC) last June, aiming to integrate generative AI like 'ChatGPT' into its devices such as the iPhone and iPad, as well as to include AI services like prioritizing major notifications and summarizing voice memos. It is expected to be incorporated through software updates after the release of the new iPhone operating system iOS 18 and iPadOS 18 next month.

Ben Wood, head of research at another market research firm CCS Insight, also told CNBC, "Apple has set a precedent that users must pay for premium services," emphasizing, "Based on this, the possibility that Apple will charge fees for advanced features within Apple Intelligence cannot be ruled out."

He added, "Apple may also offer the option to bundle Apple Intelligence into a subscription service that provides various services."

Amid growing doubts in the tech industry about the profitability relative to the cost of building AI infrastructure, the market expects that Apple’s AI fee charging could serve as a factor to alleviate such concerns.