Apple has made big moves in artificial intelligence (AI) with its iOS 18.1 and iOS 18.2 updates. Despite rumors, CEO Tim Cook says Apple has no plans to charge for AI services. In an interview with WIRED, Cook explained Apple’s approach to AI. He said it’s a core part of the user experience, not a product to sell.
Apple’s AI Strategy: Integration Over Monetization
Cook compared AI to multitouch technology. Multitouch changed how we use smartphones and tablets. Similarly, AI is a key feature of Apple’s ecosystem. “AI is not a product we’re selling,” Cook said. “It’s a core component that enhances our hardware and software.”
This sets Apple apart from its competitors. Many tech companies sell AI as a service or product. Apple, however, uses AI to add value to its devices. To access Apple Intelligence, users need a compatible device like an iPhone, iPad, or Mac. Just like multitouch was free but only on the original iPhone, Apple Intelligence is free but tied to Apple hardware.
User reactions to Apple Intelligence have been mixed. Some features feel underdeveloped. A recent survey showed many users are not impressed yet. Apple’s AI is still growing, but it’s clear the company sees it as a way to boost device sales. iPhones alone generate over $46 billion in quarterly revenue, making hardware a top priority.
At the same time, Apple’s services business is growing. This includes App Store fees and subscriptions like Apple Music and iCloud. Some wonder if Apple might monetize AI in the future. For now, Cook says that’s not the plan.
This holiday season is a great time to upgrade to an iPhone 16 or 16 Pro. These models have the latest AI features and come with holiday discounts. It’s a chance to see how Apple’s AI integrates with its ecosystem.
Apple’s AI strategy focuses on integration, not selling services. This sets the company apart. By keeping AI part of its ecosystem, Apple prioritizes innovation and user experience over direct monetization.
