Let’s make some predictions. Apple’s Services are its most successful product category, aside from the iPhone. Apple’s approach to artificial intelligence in the 21st century, coupled with its acquisitions history, suggests that it could unlock new revenue streams by 2025. Apple Intelligence could be the next major driver for Services revenue.
Why pay for Apple Intelligence Apple Intelligence is a great way to enhance your device. Apple Intelligence can be used to enhance future hardware, such as Apple Watch, HomePod, and Apple Vision Pro. Apple’s rumored home smart display also benefits from this. This creates another purchase incentive.
How can Apple monetize Apple Intelligence after it’s been widely adopted across the hardware lineup? The easiest way to do this is to paywall some of the advanced features.
Expanding model integrations (19659010) I subscribe to OpenAI ChatGPT at $20 per month, and I get significant value. This month, I am also trying Anthropic’s Claude at the same price. Although I’m still not convinced to keep both subscriptions I could be convinced. Apple has two possible ways to monetize Apple Intelligence. It is likely that Apple earns a commission on ChatGPT subscriptions bought through the Apple Intelligence Interface on iPhone, iPad and Mac. Apple has expressed interest in integrating Google Gemini into Apple Intelligence. More models equals more revenue. Maybe the future launch Gemini iPhone application will accelerate this discussion.
Why stop there? MacWhisper integrates with OpenAI (Anthropic), Google, and other providers including:
Grok
xAI
Azure
Ollama * LM Studio *
Custom providers
Apple Intelligence was designed to allow Siri’s capabilities to be extended through integration with third-party AI providers without much effort from Apple. This setup allows Apple both to benefit from a reduced subscription and enhanced service offerings – a win-win scenario.
Apple Chat
This is the key: Apple has the ability to do both. Apple could use its resources to transform Apple Intelligence into a chatbot platform similar to ChatGPT and Claude. A chatbot is a great feature to place behind a paywall. This would allow Apple to take 100% of subscription revenue, instead of only 30%. Apple could even do both.
I’d strongly consider switching over to a more privacy focused, system-integrated Chatbot from Apple instead of the limited personal knowledge offerings by OpenAI or Anthropic if done well. Siri will soon feature a basic version with enhanced personal request capabilities–that’s on the roadmap. Apple should also be working on a full-fledged chatbot that will compete with ChatGPT.
Apple’s AI technology is being used for more features
Apple uses its AI technology to create features like Cleaning Upwhen editing photos. Apple doesn’t charge for these features yet, even though they’ve been around for a long time on other platforms. They’re part of the initial set of features that define Apple Intelligence. Apple could in the future charge for advanced photo editing features like background replacement, motion-blur reduction, de-reflection and object removal. They could also charge for realistic content-aware fills. Apple could offer all the features that people subscribe to Photoshop.
Look at Apple’s recent purchase of Pixelmator, which is one of the best Photoshop alternative apps for iPhone, iPad and Mac. This move suggests that a future subscription-based professional image editor will be available, which will go far beyond the Aperture of a decade ago. It lays the foundation for a new AI-powered image editing platform, as well as additional paid photo features.
Summary
Apple Intelligence can drive hardware upgrades in near-term. Integration of third-party AI services can create new revenue streams. Launching an Apple chatbot or paywalled AI features will help Apple generate income and cover the costs associated with Apple Intelligence. Add 9to5Mac’s Google News feed.FTC: we use auto affiliate links that earn income. More.