The iPhone Is A High-Priced Commodity
The iPhone is little more than a high-priced commodity at this juncture. There is little differentiation between it and lower cost alternatives (OnePlus for example) both from a design and feature functionality standpoint. However, with 2 billion-plus devices in circulation, Apple’s future does not rest exclusively with new device sales.
Now Is the Time for Apple to Aggressively Pursue its Apple Health Initiative
Now is the time for Apple to leverage its installed user base by offering services that may be pushed through the iPhone and other Apple devices. Healthcare is one such opportunity and at 18-20% of GDP it is difficult for us to think of a better opportunity. We have previously written about Healthcare some months ago and how Apple is uniquely positioned to “consumerize” healthcare. Portable electronic medical records (“EMRs”) is the obvious point of entry and would empower consumers – a necessary first step to breaking down regulatory and political barriers – ultimately facilitating a market-based approach to healthcare service delivery as well as health insurance. Apple does not need to go at it alone. There are any number of Healthcare IT companies that the former could acquire which would both establish a beachhead and imbue Apple with the requisite domain expertise. A unified Apple Health/ Cerner EMR application whets our appetite and would be a great start. However, there is little time to waste as other large platform providers such as Amazon have already stuck their toes in the water on multiple fronts. Amazon‘s AWS unit partners with Cerner and Amazon will only become smarter about healthcare as a result of its healthcare joint venture with Berkshire and JP Morgan. Not to mention that Amazon – like Apple – has already won consumers’ trust, a significant barrier to entry for other would-be consumer healthcare technology market entrants.
Our previously published CEORater Podcast Ep. 117: Apple Is Well-Positioned to Lead A Consumer-Driven Healthcare Revolution.