With the latest two releases, iOS 18.1 and 18.2, Apple has introduced significant improvements through AI under the banner of Apple Intelligence. While several sources have indicated that Apple is already imagining a paid part in the coming years, Apple CEO Tim Cook reiterated in an interview with Steven Levy of WIRED that billing for these features had never been considered internally.
AI as fundamental as multitouch
Tim Cook compared artificial intelligence to multitoucha technology that has fundamentally changed the way we interact with smartphones and tablets since the first iPhone:
We never talked about billing. We see it as a kind of multitouch, which enabled the smartphone revolution and the modern tablet.
This comparison highlights Apple’s philosophy of integrating transformative technologies into its products as standard, not premium, features. Clearly, the boss does not want Apple Intelligence+.
In fact, Apple’s strategy here is deeply rooted in its business model:
- Material dominance : Apple’s main source of revenue comes from hardware sales, particularly iPhones. AI enhancements are seen as features that increase the value of these devices, not as separate services to be monetized.
- Growth of services : Although Apple has a growing services sector, the main financial pillar remains hardware. By integrating AI capabilities into its devices, Apple ensures that these features drive hardware sales, thereby preserving the appeal of its products without having to charge extra for AI features.
- Market positioning : Unlike competitors who might charge for AI enhancements, Apple’s approach could be seen as adding value to its hardware, making its devices more attractive in the market without having to charge extra fees.
Apple has a broader strategy
Apple’s position of not charging for all or part of Apple Intelligence, as stated by Tim Cook, reflects a broader strategy where the value of AI is seen as improving the overall product ecosystem rather than as a source of income in its own right. This approach not only allows Apple’s products to remain competitive, but also aligns with their long-term vision where technology like AI is fundamental, as is multitouch was for the iPhone. Clearly, new features, whether related to Apple Intelligence or not, are not billed (directly) to customers. Only services like iCloud+, Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, etc. are supported.
