Apple wants other companies to subsidise the cost of the iWatch in order for it to be priced at $250 [£150] and therefore affordable for consumers.
The Cupertino-based company is already canvassing healthcare companies, according to a research note released by Cowen & Co analyst Timothy Arcuri, ahead of the device getting its release in September of this year.
“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,” he wrote, according to Investors.com.
Arcuri went on to say that Apple’s pitch to companies would involve suggesting that an Apple a day keeps the doctor away and that people wearing the device would be more wary of steps taken, calories burned, and blood pressure as well as heart rate and other biometric data.
“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 non-invasive blood cell count and blood pressure and other more pedestrian features like heart rate,” Arcuri said.
Component suppliers and contract manufacturers are looking to build between five million and 10 million Apple wearables per quarter, according to Arcuri, and the forecast states that it will sell around 18 million units in 2015 at the $250 [£150] price point – much less than the $1,000 [£600] that some have predicted.
Apple is surprisingly late to the party when it comes to wearables with the likes of Samsung and Sony already on to the second incarnation of smartwatches, and Apple has brought a number of members of staff on board that worked on Nike’s Fuel Band wristband.
Arcuri added that the wearables market is “nascent and fraught with demand uncertainty,” and that the firm’s planning to release the device in September, just in time for the busy festive period.