"Midway through, Apple's healthcare efforts could generate about $ 90 billion in annual revenue by 2027, or about 35 percent of its current revenue," the report says.
Apple has some key advantages over its technology competitors, including Alphabet and Microsoft, which plans to enter the medical market and tackle the $ 3.5 trillion healthcare sector, says The report. Privacy is one of the most important benefits. For example, Apple has been able to recruit 400,000 people in less than a year for its Apple Watch study on cardiovascular health with Stanford University, suggesting that people are willing to share their medical information with Apple.
Beyond consumer appliance sales, the company has begun signing contracts with health insurers willing to pay part of the Apple Watch on behalf of its members. Apple has already signed this type of partnership with Aetna. We are also currently discussing with private health insurance plans, which could mean increased access to the Apple Watch for seniors.
"Medicare has the most concentrated funds and is the least complicated to manage," wrote Morgan Stanley analysts.
The company also has revenue potential in the electronic health record market.
IPhone users will have access to the Apple Health app, which allows customers to gather medical information from dozens of hospitals and clinics. In its current form, the feature is designed for consumers because it is extremely difficult for people to aggregate their lab reports, vaccination records, and so on.
Morgan Stanley said it could turn into a real business if Apple started collecting data and selling reports to health systems. To maintain consumer confidence, Apple should make it an effective solution to enable hospitals and clinics to gain deep knowledge of large populations while protecting each patient's data.
The report lists five other things that Apple could do to generate great interest among investors:
- Introduce new medical wearables.
- Add medical monitoring, such as sleep, blood glucose, or blood pressure.
- Make the Apple Watch easily accessible through insurance companies as a reimbursed benefit.
- Create your own joint venture with employers or join a group like Haven, currently composed of Amazon, JP Morgan and Berkshire Hathaway. Apple already runs its own employee medical clinics, called AC Wellness.
- Acquire a health care business.
Apple has publicly ignored these topics and a spokesman for the company declined to comment on the report.