Apple AI Cometh, But At What Cost?

[T0mmyR0t]

Running AI services has its costs, so if Apple launches a new AI-powered backend data center delivering AI services, what charging model can we expect?
(1) Make it an iCloud only service? – This would allow Apple to increase the costs of iCloud to cover the cost of AI
(2) Increase the RRP of hardware plus shorten device support – shorten the upgrade cycle to support the cost of AI
(3) Both (1) and (2)
(4) Something else... discuss.

Are there any people out there who think Apple will introduce AI features into their ecosystem and absorb the costs within existing profit margins?

 

[m1mini]

Apple will probably have 2 set of AI features, with first set being powered by a 7b'ish model, and it will run on device (a14 to a16 are capable of running 7b models on device) and the second set will be higher end features (running on a 15-20b parameter model) exclusive to a17 pro and onwards. a17 pro enabled massive thrroughput by having a 35 tops npu and dynamic caching (which will help mitigate the insufficent memory amount and memory bandwith). I believe that MOST of the upcoming AI features in ios 18 and onwards will run on device.

 

[Huntn]

Apple will probably have 2 set of AI features, with first set being powered by a 7b'ish model, and it will run on device (a14 to a16 are capable of running 7b models on device) and the second set will be higher end features (running on a 15-20b parameter model) exclusive to a17 pro and onwards. a17 pro enabled massive thrroughput by having a 35 tops npu and dynamic caching (which will help mitigate the insufficent memory amount and memory bandwith). I believe that MOST of the upcoming AI features in ios 18 and onwards will run on device.

What is 7b vs 15-20b?

 

[m1mini]

What is 7b vs 15-20b?

The amount of parameters in a model, B here refers to billions, so 7b would be a 7 billion parameter model.

 

[za9ra22]

I can't say I'm waiting with bated breath. Apple were first to market with 'AI' in the form of Siri, and they managed to miss out on being even an also-ran in that market within a year or so. It's not confidence inspiring when they miss a target as big as that one with an ecosystem-driven fumble of those proportions.

Plus, I suspect that AI will embed rather more in software than in the system, so I can see them looking to enhance Pages and Photos, for example, with embedded AI capabilities, but in a market where it's delivered with such ready accessibility from elsewhere via browsers, search, research tools and user-centric OS functions in either cross-platform or other-platform features, they'd have to have something they think is quite special to find a way to blatantly monetize it.

The obvious question then is whether, to find a route for profit, they could monetize something like AI writing, editing or image manipulation tools in enhanced versions of Pages and Photos, and if so, what would happen to the free versions they give us at present?

On wonders what it is that users are going to think AI is useful for and therefore want, and then what Apple believe they can do with it to add value.

 

[jb310]

Are there any people out there who think Apple will introduce AI features into their ecosystem and absorb the costs within existing profit margins?

I think it's more likely that they'll do what other companies with AI services do, and offer a premium service tier where people pay extra for access to better AI features. I think Samsung has said they'll do something like this starting with their flagships next year, where basic features are available for free, but people will need to pay a subscription for better stuff.

It wouldn't even be that hard for Apple to sell; they could just bundle it as another tier on iCloud+ or Apple One.