Huge potential for Apple in healthcare market
In 2017, Apple (AAPL) was selected alongside Samsung (SSNLF), Fitbit (FIT), Alphabet’s (GOOGL) Verily, and others for a US Food and Drug Administration (or FDA) pilot program on digital health software certification. Through the program, the FDA sought to understand how it could support the development of innovative digital health applications.
The programs such as the one the FDA undertook on health software certification could prove revolutionary for Apple. According to Morgan Stanley estimates cited by Bloomberg, the revenue opportunity for Apple in the healthcare market would be worth as much as $313 billion by 2027. Apple generated revenue of $265.6 billion in fiscal 2018, relying mostly on hardware sales, particularly iPhone sales.
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Apple Watch emerges as vital healthcare device
Apple’s healthcare opportunities span the sale of digital health devices, software, and services. Apple’s smartwatch device, called Apple Watch, is quickly emerging as a vital healthcare gadget. People can use Apple Watch to monitor the health of their heart and other health conditions.
Fitbit and Samsung also make wearable devices that people can use to monitor their health conditions or help them stay healthy by reminding them to exercise. Alphabet’s Verily is working on solutions for various debilitating diseases such as diabetes and cancer. Verily last year expanded its partnership with DexCom (DXCM), a maker of blood glucose monitoring systems.