Analyst: Apple’s iWatch May Be Subsidized by Health Insurers

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Source: iWatch Concept by Todd Hamilton

Source: iWatch Concept by Todd Hamilton

Could Apple’s (NASDAQ:AAPL) iWatch encourage users to live a healthier lifestyle? In a recent note to investors, Cowen and Company analyst Timothy Arcuri argued that Apple may ask health insurance companies to subsidize the cost of its long-rumored smartwatch, similar to the way that wireless carriers subsidize the cost of a smartphone, reports Investor’s Business Daily.

“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,” wrote Arcuri in a note obtained by Investor’s Business Daily. Apple’s iWatch is rumored to include several medical sensor technologies that would allow users to monitor various biometric data related to health, exercise, and diet.

“We continue to feel this product will differentiate itself with existing wearable products primarily from a health perspective with a number of key innovations including noninvasive blood cell count and blood pressure and other more pedestrian features like heart rate,” noted Arcuri, according to Investor’s Business Daily. The Cowen and Company analyst believes Apple will launch its iWatch in September based on his supply chain checks. Arcuri predicted that the device will retail for around $250 and that Apple will sell approximately 18 million units in 2015.

Arcuri’s iWatch timeline aligns with a recent prediction made by KGI Securities analyst Ming-Chi Kuo. However, Kuo believes that Apple will launch two different iWatch models in the third quarter of this year, including a luxury model that will cost thousands of dollars, according to a research note seen by 9to5Mac.

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