Report: Apple to Enter Health Insurance Market in 2024
Reports suggest Apple Inc. will take its first steps into the U.S. health insurance market starting in 2024. CCS Insights speculates that Apple will partner with a major insurer, using health data the company has acquired from the Apple Watch to gain a competitive edge.
Earlier this year, Apple released a report detailing how the company is empowering individuals by providing them with their health information. Apple currently collects customer health data from the Apple Watch, including blood pressure, blood oxygen levels, electrocardiogram readings and body temperature. The company also helps individuals regulate their medications. With accompanying health devices, the Apple Watch and iPhone can monitor health conditions like diabetes.
Industry analysts believe Apple’s possession of consumer health data could give the company a head start as it enters the health insurance market and cuts costs for consumers. This move is raising questions over whether Apple initially launched the Apple Watch with the long-term goal of entering the health insurance market.
“[Apple is] in such a strong position to do this. They’ve got a wealth of personal health data through Apple Watch. If they join some of the dots together, they can become a very competitive health insurance player, and that potentially is going to have quite an impact on the structure of the [health care] market in the United States.”
-CCS Insight Chief Analyst Ben Wood
What This Means
Apple’s services are currently generating approximately $20 billion per quarter. Entering the health insurance industry could boost Apple’s already successful services business. Industry analysts predict that one-third of the company’s revenue will come from software and services by 2030, where it now represents less than one-quarter of Apple’s total revenue.
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