PowerNetizen.com – Apple Intelligence launched only weeks ago, and its most exciting features are set to arrive next month with iOS 18.2—all free of charge. While some analysts are watching to see if AI will boost iPhone 16 sales, this week’s iOS beta release revealed a different strategy Apple is using to monetize its AI offerings.
Leveraging Services Revenue with iOS 18.2
For years, Apple has placed strong emphasis on its services revenue, a reliably growing segment even as hardware upgrade cycles lengthen. Many have speculated that Apple Intelligence could become a new contributor to this revenue stream.
The iOS 18.2 beta has introduced a clever monetization approach: Apple offers users the option to “Upgrade to ChatGPT Plus” within the Settings app. By promoting a subscription to OpenAI’s paid ChatGPT Plus, Apple benefits financially, taking a share of the subscription fees without charging for Apple Intelligence itself.
The Win-Win of Third-Party AI Subscriptions
Integrating ChatGPT with Siri and Apple’s writing tools in iOS 18.2 brings powerful AI capabilities to iOS users for free. Meanwhile, Apple’s decision to offer the ChatGPT Plus upgrade presents users with a premium option, positioning Apple as the provider of the free service while letting OpenAI handle the subscription fees.
This strategy could expand as Apple partners with more AI providers. Already, there are discussions about integrating Google Gemini as another potential AI extension. In the iOS 18.2 beta, ChatGPT appears under a new “Extensions” category, signaling that Apple plans to include more options in the future.
A Vision for the Future of Apple Intelligence
As new third-party AI providers are added, Apple stands to collect a share of any associated subscription revenue, without altering Apple Intelligence’s free offering. This approach allows Apple to keep its AI features free for iPhone, iPad, and Mac users, while letting those who seek premium experiences pay for them—adding to Apple’s services revenue without putting direct pressure on users.
In effect, Apple avoids being seen as the company charging for AI services. Instead, it lets users decide if they want to pay for premium AI tools while adding another stream of revenue that contributes to Apple’s bottom line.
