Apple Can Beat Samsung On Price With New ‘Free’ iPhone AI
Did Apple provide any information on whether the Apple Intelligence features would always remain free, or if they might introduce premium tiers in the future?
Apple has not explicitly stated whether its Apple Intelligence features will always remain free or if they might introduce premium tiers in the future. The company simply mentioned that the announced tools, such as Rewrite, Image Playground, and Genmoji, are free but did not provide any details on the duration of their free status. It is unclear if some features will have premium tiers in the future. The only mention of price in the press releases is related to ChatGPT's integration into iOS 18, which Apple says is "free without creating an account." When asked about the pricing, Apple told me that "they're free" but did not elaborate on how long they would remain free. This ambiguity in pricing plans is common among smartphone manufacturers as they navigate this new territory.
What specific AI tools did Apple announce at the WWDC for its Apple Intelligence platform?
At the WWDC, Apple announced several AI tools for its Apple Intelligence platform. These tools aim to provide a highly personalized experience by understanding how users interact with their devices. Some of the specific AI tools announced include:
- Writing Tools: The Rewrite feature suggests different versions of what users have written, making day-to-day tasks easier, such as in Mail, Notes, and other apps.
- Image Creation: Users can create original images using Apple Intelligence, including custom animated images of people in their Photos app.
- Genmoji: This feature allows users to generate their own emoji by typing in descriptions and requirements, such as "T-rex wearing a tutu on a surfboard."
- Image Playground: This tool lets users create images using already available characteristics, offering suggestions based on their conversations in Messages. It will also be available in Apple's apps like Keynote, Pages, and Freeform, with a dedicated Image Playground app.
- Apple Intelligence integration with Siri: Siri will now be powered by Apple Intelligence, allowing for more granular actions within apps and a more personalized experience.
- Apple Intelligence in Photos: Users can search for photos with more natural search terms, like "pics of Gina riding a skateboard on the park bench."
- Apple Intelligence in Maps: The AI can generate an image of a location based on the context of a conversation users are having in Messages.
These AI tools will be deeply integrated into iOS 18, the upcoming iPhone software, as well as the latest Mac and iPad operating systems1.
How does Apple's approach to the pricing of Apple Intelligence compare with its competitors' AI tools?
Apple's approach to pricing its AI tools, such as Apple Intelligence, seems to be more opaque compared to its competitors. While the company has not explicitly stated whether its tools will be free forever or have premium tiers in the future, it simply says that "they're free" without elaborating on the duration. In contrast, Samsung has stated that its Galaxy AI tools will be free until the end of 2025. Google and Microsoft have some paywalled features but their headline skills are free to use.
Apple's strategy might be to wait and see how the popularity of AI tools evolves and how its competitors price their offerings. If Apple AI stays free, it could steal a march on the competition. However, it's worth noting that Apple has a history of providing certain services for free initially, such as its Emergency SOS feature, and then potentially charging for them later.
In summary, Apple's approach to pricing its AI tools is less transparent compared to its competitors, and it remains to be seen how the pricing landscape will evolve in the future.