Big Tech is hungry and legacy markets are an easy target. Now the FDA has partially approved Apple’s AirPods as hearing aids, we’re going to see massive changes in the $8B global market for these devices.
Just like with EKG’s (heart electrical activity tests) on the Apple Watch, the product doesn’t actually have to be better. Apple has huge advantages on user experience, distribution, data and style. The watch EKG might be way less accurate but it’s there all the time, and now you can get an irregular heartbeat diagnosis from your desk. That’s a huge leap forward.
And we shouldn’t underestimate the importance of status here. As a child, I remember the ridicule experienced by unlucky peers in school due to their visible hearing aids, but nowadays people wear AirPods all the time: they’re cool.
You could argue these changes are not positive, as the accuracy of the most used devices will now be lower and more money will go to Big Tech. However, sometimes you need a powerful force to create change in tough markets and healthcare is certainly in need of change.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
