When they go low, we go high: Apple restricts AI features to premium devices as competitors expand access

Apple‘s strategic decision to exclude Apple Intelligence from its new entry-level iPad highlights a growing divergence in how major tech companies approach AI integration in consumer devices. While Apple maintains a hardware-tiered approach that restricts advanced AI features to premium products, competitors like Google and Amazon are democratizing AI access across broader price points. This product segmentation strategy reveals fundamental differences in how tech giants view AI’s value proposition and accessibility as the technology becomes increasingly central to consumer tech experiences.

The big picture: Apple has launched its 11th-generation iPad without Apple Intelligence support, creating a clear distinction between its entry-level and premium tablet offerings based on AI capabilities.

• The new iPad delivers 50% faster performance with an A16 chip and doubles the starting storage to 128GB while maintaining its $349 price point.
• Simultaneously, Apple introduced an iPad Air with the M3 chip that fully supports Apple Intelligence, establishing AI functionality as a premium feature in its product hierarchy.

Why this matters: Apple’s hardware-driven AI segmentation stands in stark contrast to its competitors’ approaches, potentially limiting AI adoption across its ecosystem.

• Google has designed Gemini to run on virtually all Android devices with Android 10 and at least 2GB of RAM, positioning AI as a broadly accessible feature rather than a premium offering.
• Amazon has pivoted to make AI the centerpiece of its strategy, introducing Alexa Plus as a standalone subscription service that values AI capabilities independently from hardware.

Behind the numbers: The entry-level iPad’s performance improvements represent significant value despite lacking Apple Intelligence support.

• The device’s A16 chip delivers substantial speed improvements while maintaining the same starting price as its predecessor.
• The storage upgrade to 128GB addresses a common pain point for budget-conscious consumers without raising costs.

Historical context: Apple Intelligence has followed a deliberate, phased rollout since its June 2024 introduction, with features gradually appearing beginning in October 2024.

• Industry reports suggest Apple’s measured deployment may continue, with significant Siri enhancements potentially arriving on extended timelines.
• This cautious approach aligns with Apple’s traditional product strategy of refining features before widespread release.

Reading between the lines: The distinct segmentation of Apple’s tablet lineup reveals a fundamental philosophical difference in how major tech companies view AI’s role in consumer technology.

• Apple positions AI capabilities as premium features that require specific hardware capabilities, creating clear upgrade paths within its ecosystem.
• Google and Amazon treat AI more as a platform service that should be accessible across varied price points and hardware specifications.