- Apple has taken preemptive measures to prevent unwanted spreading of users' health data online.
- In our original article, we said that HealthKit-based apps will be able to exchange and share health-related data, although we didn't mention that the data could get into wrong hands.
- With the mHealth industry growing at a CAGR of 31.5%, we believe that with the preemptive measures, Apple is heading in the right direction.
Apple (NASDAQ:AAPL) has taken preemptive measures to prevent unwanted spreading of users' health data with the release of its updated developer review guidelines on Tuesday, reports IBT. Apple has set strict rules for apps that integrate with HealthKit, and it said that it will reject the apps that stores users' health information in iCloud. The company has imposed a number of rules to prevent users' health data from getting into wrong hands. The news came on the heels of the recent cyberattack on iCloud.
Financial Times reported last week that Apple had modified its iOS developer license agreement to ban developers from selling health data collected by HealthKit. Apple said that developers must "not sell an end-user's health information collected through the HealthKit API to advertising platforms, data brokers or information resellers," according to the report.
In our original article, we said that HealthKit-based apps will be able to exchange health-related data with medical devices and share the data with other apps for more in-depth health management. However, this could get the data into wrong and unwanted hands, and Apple's mHealth foray could be negatively impacted. A recent report by GlobalData said, "GlobalData believes that Apple's strategy to unite medical applications, electronic health records and peripheral devices through a platform, reported to be the HealthKit, will be a major milestone in the wave of technology-healthcare alliances." The report added, "This move into the mobile health (mHealth) space promises significant future returns for Apple, as GlobalData forecasts this market to grow at a Compound Annual Growth Rate or CAGR of 31.5%, from an estimated $3 billion in 2013 to $11.8 billion by 2018." We believe that Apple's preemptive measures to protect users' health data is a solid step in the right direction.
Business relationship disclosure: The update has been written by a BB Research stock analyst. BB Research is not receiving compensation for it (other than from Seeking Alpha). BB Research has no business relationship with any company whose stock is mentioned in this article.