The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

AAPL Stock Prediction

Summary:

Apple is reportedly testing a smart band for blood glucose level monitoring. The said smart band will allegedly work as an add-on for the Apple Watch.

A smart band for diabetics to continuously monitor their blood sugar level offers plenty of economic potential for Apple.

There are more than 422 million people around the world that suffers from diabetes. That’s a huge market for wearable blood sugar tracker.

Selling diabetes-focus smart bands helps Apple lessen its dependency on iPhone sales.

AAPL has strong buy signals from the market trend algorithmic forecasts of I Know First.

Apple (AAPL) is set to make some money on its upcoming smart band for blood sugar level tracking. CNBC reported that Tim Cook himself is testing a non-invasive glucose monitoring device. I appreciate this latest foray for diabetes management. There’s more than 422 million people around the world that suffers from diabetes. Apple could sell a $99 or $149 non-invasive blood sugar level tracker and I expect it to easily sell 20 million units per year.

Look at the chart below that the World Health Organization (WHO) published last year. WHO emphasized that the population of diabetes-stricken people are on the rise too. The increasing sedentary lifestyle of people will continue to contribute to the diabetes epidemic.

Apple’s entry as a vendor that will help diabetes sufferers is therefore judicious. The future economic contribution of Apple selling 10 or 20 million units of a $149 smart band tracker is easy to calculate. Apple could generate new revenue of $1.49-to-$3 billion annually from glucose tracking gadgets.

My estimate is reasonable. Statista’s chart below illustrates that the world spent an estimated $935 billion on diabetes management and treatment. Helping diabetes victims is a massive industry that Apple deserves to get involved with.

The future prosperity of Apple is stronger if it expands beyond its current iPhone-centric business model. Selling medical-related gadgets is a no-brainer move to diversify Apple’s product catalog. Making itself a leader in non-invasive blood sugar level tracking could boost Apple’s stock to $170-$190 price levels. I suspect that the investing public are also full of diabetes-sufferers.

Psychology tells me that an investor who is stricken with diabetes will appreciate more a company that helps him manage his blood sugar level without the pain and bloody mess of finger pricking. Daily blood sugar level is a necessary evil that all diabetics have to endure. Apple’s promise of a non-invasive glucose monitoring device is going to be a commercial hit.

Yes, there are other non-invasive blood sugar level tracking devices. However, none of them have the brand power of Apple.

Apple News A New Product To Expand Its Empire

Sales of the iPhone is stagnating and the iPad sales has been in decline for the past three years. Apple needs new products to help it offset the reduced revenue streams from the iPhone and the iPad. My takeaway is that getting into medical-related wearables is a nascent but growing opportunity for Apple.

Another benefit of selling a smart band blood sugar level tracker could also help boost sales of the Apple Watch. I do not have an Apple Watch. However, as a diabetic, I am tempted to buy the smart band and the Apple Watch. I hate the constant finger pricking that my wife does just to monitory my daily blood glucose level.

Any product that helps Apple offset the declining sales of the iPad is welcome. Aside from the Apple Watch, investors want to see Tim Cook come up with a new product that could define his tenure at Apple. The late Steve Jobs started the iPod, iPhone, and iPad. Tim Cook needs the smart band to augment his Apple Watch accomplishment.

Conclusion

It is worth holding on to our AAPL shares. Tim Cook’s big interest in diabetes management gadgets shows he is trying hard to steer Apple in to new grounds. Getting involved in the $935 billion/year diabetes care industry will really help Apple diversify.

All the algorithmic forecasts from I Know First supports my Buy rating for AAPL. Check out the latest chart below. AAPL is unlikely to drop in price anytime soon.

Based on TipRanks data, 26 analysts are also still endorsing a Buy for AAPL. Hedge fund managers are also exhibiting a positive sentiment for Apple’s stock. It is always wise to heed the stock-picking decisions of institutional investors. More often than not, imitating the investing choices of hedge fund managers helps small investors make some tidy profit.

(Source: TipRanks)

Past I Know First Success With Apple

I Know First has been bullish on AAPL shares in past forecasts. On August 14, 2016, I know First Analyst wrote about AAPL. Since then, AAPL shares have gained 41.49%. See chart below.