Apple Subverts Medical Killer: Creates a Personal Health Data Portal to Create a “User-Centric” Health Ecosystem

Technology giant Apple is no longer satisfied with the smartphone market. Because in the face of the amount of medical health market, the mobile phone market is too small. After several trials, Apple seems to have found a killer in the medical market as a disruptor.

The global health care sector's market of more than $7 trillion (close to 10% of global GDP) has created tremendous opportunities for technology giants like Apple, which sees healthcare and health as its applications, services and wearables. The core part of the strategy.

At present, Apple's goal is to record their personal health data through users whose products are widely covered, and to go deeper into medical research, medical equipment and other fields.

Apple, Inc. Number of patents over the years (Source: CBinsights)

According to CBinsights, with Apple's Health Record and the Apple Watch with a single-lead ECG, Apple has apparently entered the health care arena.

Apple hopes to create the first third-party friendly medical platform centered on personal health records.

This report analyzes Apple's continued impact on clinical research, its strategy to establish a personal health record, and the company's next step in service-focused development.

The following is the main content of the report compiled by the Arterial Network for you:

One. Why is Apple entering the medical field?

two. Apple Health and Personal Health Record

three. Apple's ResearchKit and CareKit

four. Innovation in mobile phones, watches and medical devices

Fives. Medical device trends and layout strategies

six. Looking to the future: Where is the Apple Health Service going?

Why should Apple enter the medical industry ?

There are several main reasons why Apple has entered the highly regulated medical field. The competition between technology giants is becoming more and more fierce. They are eroding the areas that Apple has always dominated. For example, Google is producing mobile phones; Amazon is focusing on home hardware; the wearable device market is saturated.

As technology giants continue to encroach on Apple's territory, the company has found that healthcare can help differentiate its products and further achieve its core goals, including:

Sell ​​more high-margin hardware;

Increase the cost of conversion of its ecosystem;

Expand the scope of services (Apple Cloud, App Store, etc.)

Keeping users in Apple's ecosystem is the goal of Apple's successful creation of an attractive third-party developer ecosystem in its app store. The lack of an existing third-party medical data development ecosystem is an open opportunity for Apple.

This is becoming easier to understand due to the popularity of FHIR (Fast Medical Interoperability Resources) technology. FHIR is designed to improve interoperability between hospitals, doctors and other interested parties.

FHIR creates standards for different data elements so that developers can build application programming interfaces (APIs) to access data sets from different systems. Apple has also become one of the companies that are working hard to achieve this goal.

In addition, Apple can use health care as a means to distribute its products to people who are traditionally difficult to penetrate, such as low income and the elderly. Given the greater likelihood that these groups are ill, Apple can position itself as a tool to improve medical outcomes and distribute it through family members or insurance companies.

Apple's target crowd portrait (Source: CBinsights)

Apple's health advantage

Although Apple's area of ​​expertise is not health care, it has many advantages in this area, and its brand is one of the biggest advantages.

As the healthcare industry moves to a more proactive model, healthcare providers are increasingly reaching out to patients, and having a strong brand is an important part of it. In particular, Apple's focus on user privacy is noteworthy compared to other technology giants entering the healthcare arena, which is the focus of Apple's advertising at the CES conference in 2019.

Apple's strong brand benefits have created a direct relationship with iPhone users, giving Apple a distribution and scale advantage . When Apple released the Health app, user downloads climbed, and the huge user base compared with medical industry startups of the same size allowed Apple to have the advantage of negotiating with existing players in the healthcare industry.

Apple's user loyalty is much higher than other health brands (Source: CBinsights)

As of December 2016, there were 85.8 million iPhone users over the age of 13 in the United States alone. In contrast, UnitedHealthcare, the largest health group in the United States, has only about 50 million medical registrations.

Apple's user base compared to major health groups (Source: CBinsights)

The Apple brand includes a collaborative ecosystem of products that allow consumers to spend more time, data and preferences on Apple products and become an integral part of their lives.

For example, if buying an Apple product can make the user experience smoother and connect other existing data on the user's Apple account, the motivation for the user to purchase the Apple product will be stronger. Few health care companies are able to take advantage of similar ecosystem effects.

Apple's control of software and hardware ultimately brings a strong brand and consumer experience. Through the acquisition of several artificial intelligence companies, Apple has enhanced the overall strength of its software products.

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