What: Healthcare company ResMed Inc (CHESS) (ASX: RMD) announced it is joining up with Apple Inc's (NASDAQ: AAPL) Apple HealthKit. This will expose ResMed's new S+ breathing aid technology to a much wider group of customers.
ResMed is a leading producer of breathing aids and respiratory devices which are used by individuals and healthcare service providers. Already a successful company with its largest market in North America, it is moving into the e-health space to grow its customer base.
So what: Many major companies like Apple see the next big market in what is called the "quantifiable self". Using new monitoring technology together with devices such as wearable tech, individuals can record and analyse how fit and healthy they are in real time.
ResMed's products are well known among breathing disorder sufferers, but with this new app and connection with Apple, many more people who have respiratory problems and sleep apnea will find out about the company.
I recently wrote an article about ResMed developing an e-health product with Nintendo that could also expand the addressable market for ResMed products. A major selling point for the S+ product is its new, world-first technology can monitor a person's breathing and heart rate with no physical connection, so customers don't have to be wired up to it.
Now what: With the S+ products now sold at major US retailers like Apple stores, Bed Bath & Beyond, and Best Buy, ResMed's products will have more exposure to people who have trouble breathing or sleeping, yet have never purchased aids before.
The company has seen good earnings growth over the past year and in its first quarter FY 2015, revenue and net income were up 6% and 3% respectively, compared to 1Q FY 2014. Apart from the S+, it released two new products in the quarter which should help boost revenue further.
Consensus forecasts are for earnings to grow about 10% annually over the next two years. That is slower than past rates, but with the new products and wider market exposure through Nintendo's Health product development and Apple HealthKit, ResMed could potentially raise that projection.
