Apple AI: Tech giant Apple's journey with Artificial Intelligence has been a bit bumpy so far. When the company introduced its AI feature Apple Intelligence, the initial experience was not very impressive and there were many flaws in it. But the interesting thing is that despite the weak start, Apple is moving fast on the path of earning billions from AI.
The power of iPhone is making Apple strong in AI
Apple's hold in the smartphone market is not hidden from anyone. Especially the new series of iPhone has made the company stronger. This is why Google, OpenAI and other AI companies depend on Apple's platform to deliver their tools on a large scale. Apple's ecosystem is so big that if any AI app wants to reach more users, it has to take the help of iPhone and App Store.
App Store is earning tremendous income
Apple's real income is not from creating its own AI, but from the AI of others. The company takes commission from the apps available on the App Store. In the first year it is around 30% whereas later it reduces to 15%.
According to reports, in the year 2025, AI apps will earn Apple about $900 million only through store fees. This means that Apple is earning huge profits from this field even without making a big AI product itself.
Service business is becoming a real game changer
Although this earning is less than Apple's total device sales, it is very important for the service segment of the company. Apple's service business has grown rapidly in the last few years and its profits are also high. This is the reason why investors are now paying more attention to this part.
Siri will get new power of AI
Apple has now started preparations to strengthen its weak link also. The company has partnered with Google under which Gemini will be included in Siri. With this, Siri can become smarter and more reliable than before. It is believed that Apple can present its AI features on a larger scale in the upcoming WWDC 2026.
Big benefit even by creating less AI
Apple's model is a little different. While other companies are busy creating AI themselves, Apple is taking advantage of its strong platform and earning money from the technology of others. This strategy is keeping it ahead in profits despite being behind in the AI race.
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