First previewed at WWDC 2024, Apple has rolled out two servings of Apple Intelligence features with iOS 18.1 and iOS 18.2 updates. In today’s world, where every company plans to monetize its AI services, Apple took a unique stance in the AI league by offering its AI features for free. When the Apple Intelligence system was in the works, several people speculated that Apple might ask users to pay for its AI features in the future. Thankfully, it didn’t happen. Apple’s CEO Tim Cook recently mentioned that charging for AI features has never been on the table.
AI as a Foundational Technology
In a recent interview with WIRED, Tim Cook talks about how Apple sees AI as a foundational technology.
When Steven Levy at WIRED asked Tim Cook “Some companies charge for AI-enhanced services. Did you consider that?”. Tim Cook replied:
“We never talked about charging for it. We view it sort of like multitouch, which enabled the smartphone revolution and the modern tablet.”
The answer is great, and the reasoning is even more interesting. Cook described AI as a foundational technology, comparable to innovations like multitouch and beyond. This highlights the giant’s strategy of integrating cutting-edge features into the Apple ecosystem without putting additional charges on the user.
This amazing statement directly from the CEO differentiates Apple from its AI competitors. If the user has already invested in Apple’s hardware, he doesn’t need to pay an additional amount to use new features.
Hardware: The Key Driver in Apple’s BIG Business
Apple’s AI strategy is deeply tied to its long-followed hardware-first business model. Unlike other players in the AI space who lock their services behind paywalls and subscriptions, Apple has embedded its AI system right into the ecosystem. Of course, users must have Apple Intelligence-compatible devices to enjoy the AI-powered features. This clever strategy would help boost hardware sales, particularly the iPhone, which is the biggest moneymaker in Apple’s total revenue.
When multitouch technology first debuted on the iPhone, it was offered as a built-in feature, but it was exclusively linked to the premium, high-end device. The tech titan applied the same strategy with Apple Intelligence. Apple won’t charge you for AI, but you have to invest in a compatible iPhone, iPad, or Mac to use those AI-driven services. So, unlike other AI players, Apple has built its biggest business around the hardware.
Apple Intelligence Is Free to Use
So, yes, Apple Intelligence is free to use as a part of iOS 18.1 and iOS 18.2 updates. That’s only because Apple first sold you a compatible iPhone, iPad, or Mac. In case you don’t have one, you’ll indirectly pay for AI by investing in compatible hardware.
Apple can afford to offer AI for free because it’s generating crazy billions by selling us its hardware, especially the iPhones. Cook’s statements again shed some light on Apple’s clever business model that prioritizes innovation without any mandatory extra costs on the users, as the giant claims.
What do you think about Tim Cook’s statement? Tell us in the comments below.
