João Mendes-Roter, VP Patient Management Solutions at Itamar-Medical | Product-Marketing | Digital Health Expert | Business Growth Mentor
Apple recently emphasized its commitment to health screening tools, and Google continues its pursuit of bringing AI tools to healthcare. The potential contributions these two tech giants can bring to digital health and digital therapeutics (DTx) are numerous considering their products’ health-tracking features, mass connectivity and respective ecosystems.
But these companies may well become potential threats to medical device and healthcare companies. In regard to Apple, its entry into the healthcare space with products like Apple Watch and platforms like HealthKit is creating significant competition, especially as it blurs the lines between consumer technology and clinical-grade health solutions. As Apple and Google make significant strides in the digital health arena, tech leaders in the healthcare and medical device industries must adapt strategically to remain competitive.
Why are Apple and Google disrupting the digital health arena? How could these companies support healthcare companies? What are the use cases that tech leaders can leverage?
Challenge Or Threat?
Apple and Google have developed vast ecosystems, created advanced AI capabilities and established dominance in consumer devices. Through wearables like Apple Watch and Fitbit, they offer real-time health tracking while integrating health data into their platforms (iOS/Android). Their ability to analyze massive amounts of health data, and provide predictive insights, positions them as unique players in the healthcare space. Their partnerships with healthcare providers and focus on privacy allow them to bypass traditional systems, potentially reshaping how health services are delivered and monitored.
An example is Apple’s impact on the continuous glucose monitoring (CGM) market, which is likely affecting companies like Dexcom and Abbott. The Apple Watch has incorporated health monitoring features, including the ability to track one’s heart rate, blood oxygen levels and even ECGs. With the introduction of features related to glucose monitoring, like the ability to potentially integrate data from CGMs via Apple Health, Apple could enable users to monitor their glucose levels directly on their watches.
This capability may present a threat to established CGM manufacturers. If Apple were to develop its own glucose monitoring technology or integrate with existing CGMs to offer streamlined functionality through its ecosystem, it could disrupt the market by making advanced glucose monitoring more accessible and convenient for consumers.
As Apple and Google continue to innovate and expand their ecosystems, what will happen if consumers prefer the convenience of an all-in-one device that consolidates health-tracking features? Is there an opportunity for growth for established healthcare companies to protect/gain market share?
The Opportunity
We’ve seen these two tech giants take on key partnerships over the past several years. For example, in 2018, Zimmer Biomet, a leader in musculoskeletal healthcare, worked with Apple using Apple Watch and iPhone to “change the patient journey for two of the most common surgeries Americans undergo each year: knee and hip replacement.” Zimmer Biomet’s mymobility app uses Apple Watch to facilitate a new level of connection between patients and their surgical care teams. This tool enables providers to track patients’ gait and walking speed, offering real-time feedback to patients and insights to surgeons that help optimize recovery outcomes.
In 2019, Sanofi, a leading biopharmaceutical company, teamed up with Google to advance “real-world evidence” (RWE) research and drug discovery through Google Cloud’s powerful data processing and AI capabilities. This partnership includes a joint venture with Verily (an Alphabet subsidiary) called Onduo, which is focused on developing digital health tools specifically for diabetes management.
Apple and Google can support tech companies by providing platform integration, enabling startups to leverage data from wearables and mobile devices. Advanced AI and machine learning tools, such as Google Cloud AI and Core ML, allow companies to build sophisticated health solutions. Both giants offer research partnerships, access to funding, strategic acquisitions, robust security and privacy tools to ensure compliance with healthcare regulations. The opportunity is clear, but how can tech leaders mitigate their risk?
Playing It Smart
As Apple and Google expand in digital health, tech leaders ought to capitalize on their strengths and collaboration/M&A strategies to retain their competitive edge. First, they should focus on niche clinical areas that require specialized knowledge and solutions, as Apple’s and Google’s health tools are designed for broad usage (fitness tracking, heart health, etc.). Second, it’s critical to build in-house regulatory expertise to facilitate market entry and ensure compliance with local and international laws while Google and Apple face scrutiny regarding data use. Finally, investing in advanced technologies will be essential (e.g., AI and data analytics) where Google and Apple are pushing forward.
Furthermore, as healthcare becomes more consumer-oriented, tech leaders have no other option than to focus on developing user-friendly, patient-centered technologies that empower users to manage their health. This includes intuitive apps, personalized data visualizations and seamless integration with other digital health tools.
Ultimately, tech leaders should develop systems that are platform-agnostic (i.e., able to adapt to various operating systems and ecosystems), making it easier to shift/integrate new platforms as the industry evolves and to help mitigate the risks associated with being locked into a single tech giant’s ecosystem. A good example is Abbott Laboratories, which integrates its FreeStyle Libre glucose monitoring system with Apple Health and Android devices. The company attracts tech-savvy consumers with user-friendly health solutions but stays focused on a diverse range of medical devices to grow revenue.
Conclusion
While Apple and Google have the potential to disrupt healthcare with their financial strength, large user base, user-friendly solutions, data integration and regulatory advances, there are areas where traditional companies have a competitive edge, particularly in high-precision, specialized medical technologies.
Tech leaders must constantly deploy strategies to protect and grow their businesses. This will be beyond the inherent focus on clinical specialization, regulatory expertise and development of integrated/interoperable solutions. This means strengthening long-term collaborations with hospitals and research organizations, continuously enhancing provider experience and patient engagement, and considering M&As to navigate the complexities of the market and enhance patient care while differentiating themselves from consumer-focused tech companies.
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