Over the past few months, two big waves of Apple Intelligence features have debuted via iOS 18.1 and iOS 18.2. While some have speculated Apple is planning paid AI services in the future, Apple’s CEO Tim Cook recently said that charging has never even been discussed. Here’s why.
Apple views AI as being ‘sort of like multitouch’
Steven Levy at WIRED interviewed Tim Cook recently about AI and more. One key quote has stuck with me since that interview was published earlier this month.
Levy: Some companies charge for AI-enhanced services. Did you consider that?
Cook: We never talked about charging for it. We view it sort of like multitouch, which enabled the smartphone revolution and the modern tablet.
Straight from the CEO himself, Apple reportedly ‘never talked about’ charging for AI.
His reasoning is interesting, positioning AI as a sort of fundamental new technology akin to multitouch and more.
But it also highlights a big difference between Apple and its AI competitors.
That difference, I think, points to an even more important reason why monetization wasn’t on the table for Apple.
Hardware remains Apple’s big business, bankrolling everything else the company does
When multitouch debuted on the first iPhone, it was technically a free feature, yes. But it was inseparably tied to what was then a very expensive new product.
Apple Intelligence is very similar.
Apple isn’t charging for AI, but you also can’t use Apple Intelligence unless you first buy a compatible iPhone, iPad, or Mac.
Unlike the vast majority of other AI players, Apple has built its primary business around hardware.
The company does have an ever-growing services business, but the bulk of its revenue is still tied to hardware. And within that hardware bucket, nothing compares to Apple’s iPhone revenue.
So yes, Apple Intelligence is technically free as part of iOS 18.1 and iOS 18.2. But that’s only because Apple first sold you an iPhone.
And Tim Cook knows that very well.
Apple can give AI away, at no extra charge, because it’s doing just fine selling us all new iPhones.
What do you think of Tim Cook’s statement? Let us know in the comments.
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