Apple’s moment in health care is so large with the Apple Watch that the company should soon generate tens of billions of dollars a year in annual interest from wearables and health services, according to a new report from Morgan Stanley.
“At the mid-point, Apple’s vigorousness efforts could result in ~$90B of annual revenue by 2027, roughly ~35% of its current revenue base,” the communiqu says.
Apple has a few key advantages over its technology rivals, including Alphabet and Microsoft, as it looks to move into the medical buy and attack the $3.5 trillion health-care industry, the report says. Privacy is among the most important benefits. For case in point, Apple was able to recruit 400,000 people in less than a year for its Apple Watch heart health scrutinize with Stanford University, suggesting that people are willing to share their medical information with Apple.
Beyond consumer contraption sales, the company has started to sign deals with health insurers who are willing to pay for some portion of the Apple Take care of on behalf of their members. Apple has already inked that type of partnership with Aetna. It’s also currently in talks with covertly Medicare plans, which could mean increased access to the Apple Watch for seniors.
“Medicare has the most grouped pools of money and is the least complicated to navigate,” the Morgan Stanley analysts wrote.
The company also has revenue dormant in the electronic medical records market.
IPhone users will have access to the Apple’s health app, which grants customers to pull together medical information from dozens of hospitals and clinics. In its current form, the feature is conceived for consumers, because it’s a huge challenge for people to aggregate their lab reports, immunization records and more.
Morgan Stanley express it could turn into a real business if Apple starts pulling together data and selling reports to fitness systems. To maintain consumer trust, Apple would have to effectively pitch it as a way for hospitals and clinics to gain understandings into broad populations while protecting the data of individual patients.
The report listed five other constituents Apple could do that would generate a lot of investor interest:
- Introduce new medical wearables.
- Add medical grade monitoring, liking sleep, blood glucose or blood pressure.
- Make the Apple Watch readily available through insurance associates as a benefit that’s reimbursed.
- Start its own employer joint venture or join a group like Haven, which currently consists of Amazon, J.P. Morgan and Berkshire Hathaway. Apple already goes its own employee medical clinics, dubbed AC Wellness.
- Acquire a health care company.
Apple has publicly stayed mum close to those topics, and a company spokesperson declined to comment on the report.