We all know that Apple now has its eye on driving revenue from the health sector. Where else can it look to move from its current income of close to $400 Billion to get to $1 Trillion turnover in the next few years?
So I was very interested to read Scott Galloway’s latest analysis of Apple’s future strategy. Very much worth a read.
https://www.profgalloway.com/apple-thief/
Here is what he says about what Apple might do now in health.
To date, Apple has positioned the health capabilities of the Apple Watch as a feel-good consumer benefit. Fall down, it calls 911. Have an irregular heart beat, it tells you to contact a cardiologist. But on Apple’s most recent earnings call, Tim Cook said, "we’re still in the early innings with our health work." Apple is continuing to build an array of sensors (hardware) and data mining and analysis tools (software). The low-hanging fruit: athletic heart rate monitors. A bit further up the tree: hearing aids. But what’s likely next? Services.
"Hey Siri, does this mole look suspicious to you?"
Unless CVS starts putting devices in customers’ hands, the best decision it can make is to pay to become the default integrated health-care provider on the iPhone — the medical version of the Apple-Google search contract. Google pays about 6% of its revenue for that contract. If CVS made the same calculation, Apple would receive another $17 billion direct deposit every year.
Or, Apple could just … become CVS. There’s nothing stopping the company from turning the iPhone into a homing device for a network of Jokr-like dark stores that could deliver every consumer health-care item (plus diapers) to your doorstep. Health services and premiums aside, Apple could take out CVS’s product sales. What’s reasonable? Half? A third? Let’s say a quarter: $75 billion by 2030.