Key Points:
- Apple CEO Tim Cook has stated that the company never discussed charging for its AI services.
- Cook views AI as a fundamental new technology, similar to multitouch, which revolutionized the smartphone and tablet industries.
- Apple’s hardware business is its main source of revenue, making it possible for the company to offer AI services at no extra charge.
As Apple’s iOS 18.1 and 18.2 have unveiled new waves of AI features, speculations have been circulating about the company’s plans to charge for its AI-enhanced services. However, Apple’s CEO Tim Cook has shut down these rumors, stating that charging has never been a consideration.
In an interview with Steven Levy at WIRED, Cook drew parallels between AI and multitouch, which enabled the smartphone revolution and modern tablets. This comparison highlights Apple’s vision for AI as a fundamental new technology, rather than a premium feature that can be charged for.
So, why isn’t Apple monetizing its AI services? The answer lies in its business model. Unlike other companies, Apple’s primary focus is on hardware, which generate the majority of its revenue. The company’s services business is growing, but it’s still a smaller portion of its overall revenue.
As a result, Apple can offer its AI features as part of its iOS 18.1 and 18.2 updates at no extra charge. This is because the company’s hardware sales continue to drive its success, allowing it to subsidize its services, including AI.
In short, Apple can afford to give away AI because it’s doing just fine selling us new iPhones. And with the release of iOS 18.1 and 18.2, you can experience the latest AI features on your iPhone, iPad, or Mac, without having to pay an extra fee.
So, what do you think of Tim Cook’s statement? Share your thoughts in the comments! Looking for more great iPhone accessories? Check out our recommendations!
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