We're slowly moving to a subscription phone, thanks to AI

  • The smartphone industry is gradually moving towards a subscription model, thanks to AI.
  • AI is here to stay, with Google’s Pixel 8 and the Samsung Galaxy S24 series already imbued with various AI capabilities.
  • However, the question arises whether consumers are willing to pay extra for AI in the longer term.
  • Samsung states that Galaxy AI will remain free until 2025, but it has hinted that more advanced AI features could arrive for paid subscribers.
  • Google already charges more for some of its latest AI features, like Video Boost, which is only available on the more expensive Pixel 8 Pro, owing to data center costs.
  • An “AI subscription” seems like the inevitable outcome, with Google’s Gemini providing a glimpse into the future.
  • While the basic AI assistant remains free, advanced features like Help Me Write, which runs across Docs, Gmail, Sheets, and more, are locked away behind the new $19.99 per month Google One AI Premium plan.
  • The big question AI subscriptions must answer is whether they can offer the equivalent value and everyday utility as the multimedia and other monthly fees customers are happy to pay.
  • Providers offering AI capabilities spanning documents, email, messaging, search, photos, videos, and more will be best positioned to command a subscription worth having.
  • Perhaps the stagnant state of modern hardware and the trend toward longer-term software support means it’s time to revisit the idea of smartphones-as-a-service. Would $35 or so a month for hardware and software be preferable to buying a $1,000 phone with an AI subscription on top?

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