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The Apple Watch may be coming to Aetna’s 23 million members as a free or discounted perk

Global Wearable Shipments
Global Wearable Shipments

(BI Intelligence)

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Apple and health insurer Aetna are reportedly in talks to bring the Apple Watch to Aetna’s 23 million members as a free or discounted perk, according to CNBC.

The deal, an expansion of a similar initiative announced in September 2016, would be a boon for Apple Watch shipments.

The Apple-Aetna partnership plays well into Apple’s overall product strategy:

  • It enhances Apple’s presence in the healthcare industry. Apple has been on the move to transform the healthcare industry with its devices, and is rumored to be in contact with hospitals, developers, and other industry groups as it explores potential acquisitions and partnerships. An insurance company could help Apple become a more trusted platform for health data.

  • It caters to the Apple Watch's more targeted audience. Following a stark downturn in demand for Apple Watches in Q2 2016, Apple CEO Tim Cook shifted the focus of the device toward health and fitness consumers, according to IDC. The expanded partnership with Aetna customers could help solidify the Apple Watch's image as a healthcare device.

  • It could provide more refined use cases for Apple Watch apps. Health apps from insurance companies could incentivize consumers to use these devices. Aetna plans to develop a suite of iOS health initiatives with support from Apple, which would give Aetna customers access to integrated health apps for the Apple Watch, iPhone, and iPad.

The partnership could also provide some stability for the Apple Watch within the volatile health and fitness tracking market. Unstable consumer demand, a lack of a clear use case, and waning developer interest has encouraged a seesawing wearables market. Apple Watch sales grew 50% year-over-year (YoY) during the company's fiscal Q3 2017 (ended June), however, 12 months earlier, Apple Watch sales plummeted 57% YoY. Meanwhile, early wearables entrants Fitbit and Jawbone are struggling in the market. Fitbit shipments plummeted to less than 16% in Q2 2017, from 29% the year prior, and Jawbone is currently facing liquidation.

There's plenty of room for growth within the healthcare wearables market. Global shipments of healthcare wearables are projected to increase at a five-year CAGR of 18%, to 240 million units in 2021, according to IDC. The Aetna deal leaves Apple well positioned to pull ahead of the competition.

Laurie Beaver, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on smartwatches that:

  • Forecasts smartwatch shipments through 2021 for both overall device shipments as well as by operating system.

  • Provides an overview of the main players in both hardware and software, and how they will size up in the future.

  • Demonstrates the effect of Apple’s entrance into the market, and why it's unlikely to dictate future growth.

  • Gives insight into what technologies need to be worked on in order to incentivize future growth, the effects they will have on the market, and how they can be used.

  • And much more.

To get the full report, subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now

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