Apple is focusing on software and AI as a source of growth due to decreasing hardware sales.
Apple is reportedly planning to monetize its AI capabilities through paid subscriptions or service fees.
Talks have been held between Apple and various AI partners like Meta and OpenAI.
Apple, the tech giant known for its innovative hardware products, is now focusing on software and artificial intelligence (AI) as a source of growth. The company's devices are lasting longer than before, which means customers may not upgrade as frequently. To compensate for this trend and make up for potential revenue losses from hardware sales, Apple is reportedly planning to monetize its AI capabilities by offering paid subscriptions or charging service fees.
According to Bloomberg's Mark Gurman, Apple has been in talks with various AI partners like Meta and OpenAI. While some features will remain free, such as the integration of ChatGPT into Apple Intelligence, there are plans to introduce a paid subscription service called
Apple is seeking partnerships for the Chinese market where ChatGPT and other similar AI services are not available.
Making AI features another services revenue stream should allow Apple to compensate for the slowing pace of hardware upgrades and make the company less reliant on hardware tweaks.
Accuracy
Apple plans to turn some of its artificial intelligence features into paid services, similar to iCloud+ subscriptions.
Apple is focusing on software and artificial intelligence as a source of growth.
Customers may have to buy new iPhones for Apple Intelligence offerings.
Accuracy
Apple is seeking partnerships to broaden its AI capabilities, including reported talks with Meta.
Deception
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The article makes several statements that are not deceptive but do contain some editorializing and selective reporting. The author states that Apple's devices are lasting longer, which is a fact. However, they also argue that this could make Apple a less reliable source of growth and depend more on service fees and subscriptions to fuel sales. This is an opinionated statement based on the author's interpretation of the data presented in the article. The author also selectively reports that Apple has been seeking partnerships to broaden its AI capabilities, but does not mention that these talks with Meta were ultimately rejected. This could give readers a skewed perspective on Apple's current AI efforts and partnership opportunities.
If Apple gets its way, consumers’ iPhones will know their shopping preferences and predict their next purchase.
Meanwhile, PYMNTS wrote earlier this month that Apple’s new AI efforts could transform how consumers interact with their devices and, more importantly, how they shop.
The report goes on to argue that Apple will be a less reliable source of growth as sales decline.
Apple may introduce a paid subscription service called Apple Intelligence+ in the future.
The cost of Apple Intelligence+ is predicted to be in the $5-10 per month range.
Accuracy
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Deception
(50%)
The article states that 'Apple Intelligence may follow' and 'the long-term plan is to make money off the capabilities.' These statements imply a potential future subscription service without explicitly stating it. This constitutes selective reporting and emotional manipulation as the author is trying to generate interest in a potential future event by implying that users may have to pay for additional features. The article also states 'It's not clear at this stage how the company might split out paid from inclusive features.' This statement implies that there will be both free and paid features, but it does not disclose what those features are or how they will be differentiated. This constitutes selective reporting as the author is withholding information that could impact the reader's decision-making.
Apple Intelligence may follow
the long-term plan is to make money off the capabilities.
