Apple`s Foray into Healthcare: The Next Frontier for Disruption?

Case Code: BSTR693
Case Length: 20 Pages
Period: -
Pub Date: 2025
Teaching Note: Available

Price: Rs.400
Organization : Apple Inc.
Industry : Technology & Communications
Countries : United States
Themes: Diversification, Platform Strategy Digital Disruption,Competitive Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Apple’s Foray into Healthcare

It was in 2014 that Apple ventured into the healthcare sector in a significant way. Over the years, it went on to introduce various health-focused apps and wearables (See Exhibit II). As of the 2010s, with the growing integration of digital tools in healthcare, Apple saw an opportunity to empower users with advanced health-tracking features, while also supporting medical professionals with data-driven insights..

Apple’s Collaboration with the Medical Community

As Apple expanded its focus on healthcare technology, it recognized the need for medical expertise in developing innovative health-related products and services. Therefore, it collaborated with a sizeable internal team of doctors, health coaches, and engineers to develop its health-focused software and hardware. It also brought in experienced professionals from the medical field to contribute their knowledge and insights..

Apple – Enhancing Research Activities

Apple claimed that privacy was a core value, making data protection especially crucial for sensitive health information. Its health and fitness features prioritized user privacy, offering protections such as transparency and control. The iPhone could be locked with a passcode, Touch ID, or Face ID. All health and fitness data in the Health app – except for Medical ID – was encrypted, while any health data synced to iCloud remained encrypted both in transit and on Apple servers..

Apple – Constantly Adding New Health Features

Over the years, the Apple Watch offered capabilities such as heart rate monitoring, atrial fibrillation detection, fall and crash detection, blood-oxygen level monitoring, and body temperature tracking for fertility planning. In 2022, Apple offered a satellite-based crash detection service with the iPhone 14 and Apple Watch. This technology used a combination of built-in motion sensors, a microphone, an accelerometer, and a barometer. These sensors detected the force, sound, sudden halt, and air pressure changes that were characteristic of a severe crash..

How successful has apple been in the healthcare sector?

Most customers initially paid little attention to Apple’s healthcare initiatives, but the launch of various apps and collaborative projects soon helped the company gain recognition in the healthcare sector. One key reason for Apple’s success in the healthcare sector was the fact that its healthcare products/services – were developed on a platform that was already familiar to users..

So, what’s stopping apple in the healthcare space?

Apple did manage to make significant strides in the healthcare industry through its ecosystem of devices, apps, and services like the Apple Watch, Health app, and partnerships with healthcare providers..

The Road Ahead

The wearable medical devices market size had grown exponentially from 2015 to 2021. Analysts expected that it would grow from US$ 33.37 billion in 2024 to US$ 40.65 billion in 2025 at a compound annual growth rate..

Exhibits

Exhibit I: Apple’s Revenue Breakdown by Segment –October 2024
Exhibit II: Apple’s Journey into Healthcare Timeline
Exhibit III: Apple’s Healthcare Acquisitions and Investments
Exhibit IV: Companies Information
Exhibit V: Apple Healthcare Eco System
Exhibit VI: Wearable Medical Devices Global Market 2025
Exhibit VII: US Wearable Medical Devices Market Size 2023-2033 (USD Billion)
Exhibit VIII: Global Wearable Band Shipment by Category, Q2-2024

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