Apple (AAPL 4.86%) has made no secret of its aspirations in the healthcare market and has made steady inroads into the space over the past few years. Many Apple Watch features focus on health and fitness. The device has a heart rate sensor that can also administer an electrocardiogram (ECG) and detect an abnormal heart rhythm, alerting the wearer to a life-threatening condition. The iPhone and Apple Watch can detect when the user has fallen or been involved in a car accident. The iPhone can also store a variety of patient medical records.
Now another Apple product is helping the company on its way to the massive healthcare market.
Image source: Apple.
Can you hear me now?
It is estimated that 30 million people in the United States suffer from hearing loss. That’s around 15% of the population with the condition – and most don’t wear hearing aids. In fact, up to half of people over the age of 75 will develop disabling hearing loss. Yet up to 75% of people with this condition do not use a hearing aid. Why so little?
Devices can be expensive and require ongoing visits to a hearing specialist. Additionally, patients complain that many hearing aids are uncomfortable and do not fit well. There is also a social stigma associated with hearing loss, as people fear being seen as old. Enter Apple AirPods.
An apple a day
Scientists in Taiwan conducted a groundbreaking study to find out if AirPods could help people who are hard of hearing. In a clinical study of 21 patients, researchers at Taipei Veterans General Hospital tested Apple’s Live Listen feature, which is available on iPhone when paired with AirPods or Beats headphones. Live Listen “can act like a microphone” and “can help you hear a conversation in a noisy area or even hear someone talking across the room,” according to Apple.
In the study published in the medical journal iScience, researchers read a short sentence to patients with various conditions. These included unaided (nothing in their ears), using a basic hearing aid, a premium hearing aid, AirPods 2 and AirPods Pro.
Research found that AirPods Pro performed as well as a basic hearing aid in quieter situations, only marginally less effective than higher-end models. In a noisier environment, the AirPods Pro performed just as well as high-end medical devices, although the researchers noted some limitations. The AirPods Pro worked best if the sound came from the listener’s side, but they weren’t as effective if the sound came from directly in front of the user.
Additionally – and perhaps more importantly – the AirPods Pro also met four of the five electro-acoustic standards required by the US government for a device to be called a “hearing aid”. It would take just a few decibel-level tweaks to hit the fifth standard, meaning AirPods Pro paired with an iPhone could meet the criteria to serve as a government-sanctioned hearing aid.
Then there is the cost factor. High-end hearing aids cost around $10,000, while more basic models cost around $1,500. Compare that to the cost of the AirPods Pro — which cost $249 — and the advantage is clear. Given the ubiquity of the iPhone and the affordability of AirPods, it’s not a stretch to envision a future where Apple dominates the hearing aid market.
Another multi-billion dollar market
Although estimates vary, according to Precedence Research, the global hearing aid market was valued at approximately $11 billion last year and is expected to reach $19.5 billion by 2030. For context, Apple has generated sales of more than $90 billion in its fourth fiscal quarter of 2022 (ended Sept. 24), so it won’t shake things up for the tech giant or its investors — at least not on its own.
Also, this study had a small sample size, but this could ultimately lead to much more comprehensive research. There’s still a long way to go before iPhone users can officially use the AirPods Pro as a hearing aid, but it still suggests another one stealth way Apple could increase its share of the nearly $4 trillion spent annually on health care in the United States
Danny Vena holds positions at Apple. The Motley Fool holds positions and recommends Apple. The Motley Fool recommends the following options: long calls $120 in March 2023 on Apple and short calls $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.
