Health tech, subscription services will drive Apple's profits, former CEO John Sculley says

Apple will continue to focus on its health technology products and services to increase future profits, the tech giant's former CEO John Sculley told CNBC.

The Apple Watch along with the company's other products, such as AirPods, will continue to advance as biometric sensors and algorithms get "better and smarter," Mr. Sculley, said, according to the report. Mr. Sculley serves as chairman and chief marketing officer of RxAdvance, a cloud-based platform that helps healthcare providers manage homebound patients.

"We can expect to see some real innovations over the next couple of years. And the game change is not just the devices," Mr. Sculley said. "It's the subscription services in health, which can be incredibly profitable and really big growth gainers for Apple."

Apple's large iPhone user base will benefit the tech giant's move into service markets that can work with its Apple hardware, such as the company's recent launch of subscription digital news service Apple News+, and its subscription Apple TV+ video streaming service, set to release this fall.

The company's Apple Watch has been its staple health tech device, which can identify heart rhythm irregularities. Mr. Sculley predicts the device will continue to advance.

"With consumer wearables, we're just at the early days of something that can be extremely important," Mr. Sculley said. "It may be biggest gainer of share of growth of anything that Apple has. Not the largest share of market but share of growth and probably very profitable share of growth with subscription services for health."

More articles on health IT:
Google to spearhead AI, tech global advisory council
ECRI Institute, EHR Association develop new opioid prescribing guidelines
16 hospitals, health systems seeking Allscripts, Cerner, Epic, Meditech talent

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months