Gene Munster, managing partner at Deepwater Asset Management, says Apple Inc. (NASDAQ: AAPL) could unlock a multibillion-dollar opportunity by transforming Siri into a premium artificial intelligence subscription service.
Munster laid out the case in a post on X, arguing that a significantly more capable Siri could become a major new driver for Apple’s already substantial services business.
He posted a video clip alongside his written argument, in which he and fellow managing partner Doug Clinton discussed what percentage of Apple’s iPhone user base might realistically pay for personalized AI within five years.
“If Apple gets Siri right,” Munster wrote, the assistant could become a “high-margin annual subscription” that generates more revenue than investors currently anticipate.
Deepwater’s estimate centers on 100 million subscribers paying $20 per month, a scenario that would produce roughly $24 billion in annual revenue, equal to approximately 6% of Apple’s total revenue.
Munster was careful to frame the projection modestly, describing it as a “low end example just for scale” and suggesting the actual paying user base could climb considerably higher as personal AI assistants become more useful.
He separately warned that Apple risks losing the subscription opportunity entirely if consumers grow accustomed to rival products first, specifically naming Meta Platforms Inc.’s (NASDAQ: META) Muse and Space Exploration Technologies Corp.’s (NASDAQ: SPCX) Grokbot as competing services that could capture user habits ahead of Apple.
A successful paid Siri tier would give Apple another predictable, recurring revenue stream beyond its hardware sales cycle, potentially reinforcing a services segment that investors already watch closely.
The projections hinge entirely on Apple delivering a materially better Siri, as analysts currently say the assistant trails Meta’s Muse in key capabilities including persistent background tasks, third-party action support, and integrated payment features.
Apple rolled out a redesigned Siri with iOS 27 last month, powered by customized models from Alphabet Inc.’s (NASDAQ: GOOGL) Google Gemini, signaling that the company is actively working to close the competitive gap.
The company also unveiled a range of smart home products on Tuesday, including an iPad-like device called HomeView, as it bets that an AI-enhanced Siri can help it compete in the connected home market.
Apple’s market capitalization briefly crossed the $5 trillion mark on Monday for the fifth time but failed to hold above that threshold, repeating a pattern observed twice in July and twice in September, according to the Wall Street Journal, citing Dow Jones Market Data.
Apple shares closed Tuesday at $341.27, having reached a record intraday high of $348.15 during the session, with the stock up 25.93% year-to-date according to Benzinga Pro data.
