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iWatch cost could be subsidized by health insurers, analyst suggests

(iWatch concept by Todd Hamilton)

Apple could be planning to subsidize the cost of its upcoming wearable product through health insurers, Cowan & Co. analyst Timothy Arcuri speculates.

“We continue to believe it is possible the product (iWatch) is backstopped by some sort of insurance subsidization model similar to the carrier subsidization model for iPhone.”

The report, which believes Apple will announce the fitness-related device in September and launch ahead of the holidays at an average selling price of $250, says Apple will position the iWatch as a device that makes customers more health conscious.

While its unclear if Arcuri’s healthcare subsidy prediction holds any merit (his production and price estimates are based on conversations with companies in the supply chain), it is evident that Apple’s anticipated wearable entry will have a strong emphasis on health and fitness.

Earlier last month, we shared Apple’s upcoming health and fitness app in-detail dubbed Healthbook and aimed at a future version of Apple’s iOS mobile software.

healthbook-book

The app illustrates Apple’s interest in collecting and presenting extensive health data including respiratory rate, heart rate, hydration, blood sugar, and more. We’ve also reported on several of Apple’s health and fitness-related hires as well as on the iWatch’s sensor-laded potential in development.

Earlier this week, KGI Research analyst Ming-Chi Kuo released his 2014 prediction timeline for Apple’s product launches which included an iWatch in two sizes in Q3 with one model potentially priced at the several thousand dollar price point.

 

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Comments

  1. TechPeeve (@TechPeeve) - 10 years ago

    read as, another thing we’ll all pay for by higher rates. Good job

    • Negative, you may pay lower rates as conditions will be picked up many years before they would ordinarily be noticed, allowing early diagnosis and treatment and in some circumstances avoiding the condition altogether, saving your life and the insurance company huge money in later treatment.

  2. Troy (@Bulldogger123) - 10 years ago

    I just wish Analysts would stop prognosticating and stick with what they know. They will end up being wrong and Apple stock will pay the price!

  3. damian4unity - 10 years ago

    This health watch could be like having a AI doctor on your wrist 24/7, screening for high BP, glucose , sleep apnea etc.
    I already get a $400 disc on insurance by talking over these stats with a health advisor. Could this create more health advisor jobs working with your iWatch health stats ?
    The iHealthWatch could save consumers millions (& your life) & insurers billions, despite what the nattering nabobs of negativity may say. The iwatch could screen for dozens of diseases & recommend doctors, & give background info. Plus your doctor will love having all the detailed stats from your watch data 24/7.
    Voluntary collective data also valuable for research & study.

  4. FAKE (@bob_spounge) - 10 years ago

    Not with national health insurance in the UK.

  5. 9Rose - 10 years ago

    I was skeptical about this product initially as i did iPhone a few years back. Now that I see how slick and nice this looks, I’m very tempted to own one too. Sucha tech junkie.

Author

Avatar for Zac Hall Zac Hall

Zac covers Apple news, hosts the 9to5Mac Happy Hour podcast, and created SpaceExplored.com.