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The Apples and Googles of the world regularly use enhanced features to justify higher price points. (Although the iPhone’s cost has more or less tracked inflation since 2016.) Not surprisingly, tech firms believe AI features add real value. As The Wall Street Journal observes, Microsoft boosted the monthly price of Office 365 by $30 per user when it added Copilot, a 50% increase from some preceding versions.
Such moves are inevitable right now, the Journal says, since “those new data centers and microchips aren’t going to pay for themselves.” But the AI business is still young, and it’s still laboring to figure out just how much value its capabilities add to a product.
No Gold Rush
In the medium and long terms, AI-powered devices may not guarantee higher revenue. Consumers have spent years spending more on streaming services, home deliveries and other tech-driven products, leading many to put a brake on their technology spending. Will iOS 18’s improved controls, organizational tools and flexibility
