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Your smartwatch isn’t a product you bought. It’s a data terminal for the companies that will sell your future health. Discover the real business model that's creating a new empire in health-tech.
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The Rise of the Health-as-a-Service Empire
The era of reactive hardware is over. While smartwatches alerting paramedics was once revolutionary, the new frontier is proactive health. AI models can now forecast diseases years in advance, proving that the true value isn't in the device on your wrist, but in the predictive power of the data on the server.
The global wellness market is a massive opportunity, with the wearable fitness tracker sub-market expected to see explosive growth, creating the foundation for the HaaS revolution.
Selling hardware is a low-margin business. The real, durable value lies in high-margin, recurring services, as seen in Apple's own financial split.
WHOOP's $3.6B valuation was achieved by abandoning the one-time hardware sale model. By subsidizing hardware and focusing on a high-LTV subscription service, they built a defensible data-centric business that legacy models cannot compete with.
The core of the Health-as-a-Service model is a powerful, self-reinforcing loop that builds an unassailable competitive moat.
An engaged user base generates a continuous stream of proprietary data.
Larger datasets enable the training of more accurate AI models.
Superior algorithms deliver better, more personalized user insights.
A superior product experience attracts even more users, restarting the cycle.
While the data is acquired from consumers, the generational wealth will be built by selling certainty and risk reduction to the enterprise.
-17%
Lower hospital costs for engaged members in programs like John Hancock's Vitality.
$1,242
Average annual savings per employee from corporate wellness programs using wearables.
$8M
Potential savings per day by accelerating clinical trials with real-world wearable data.
Shift from a one-time transaction to recurring revenue based on predicting health outcomes.
In a world of commoditized AI, a proprietary, longitudinal dataset is the only durable competitive advantage.
The greatest value is captured by selling risk-reduction and certainty to large-scale B2B clients.
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Your smartwatch isn’t a product you bought. It’s a data terminal for the companies that will sell your future health. Discover the real business model that's creating a new empire in health-tech.
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