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Aug 16

Apple Watch’s New Fitness Regime Could Be Highlighted by Deal With Aetna – TheStreet.com

Aetna's (AET) reported deal to offer a discounted or even free Apple Watchto its base of 23 million customerswould underscore the importance of health and fitness apps to Apple's (AAPL) line of smart watches.

Apple boss Tim Cook has been bullish on health and fitness apps for the smart watch, noting that the device is "motivating [users] to sit less and move more" during a third fiscal quarter earnings call in early August. Upgrades coming in Watch OS4will allow the device to serve as a personalactivity coach, whileApple's GymKit program will connect the watchto cardio equipment, he continued.

The current Apple Watches require proximity to an iPhone to connect to the Internet, limiting the appeal to Aetna customers or others who ownphones with Android or other operating systems.The next iteration of the iPhone reportedly will have its own wireless connection, a boon for non-iPhone users.

"If you don't have an iPhone today, the Apple watch is probably not going to be in your consideration set," said Jeff Orr of ABI Research. "If those rumors do come true and a stand-alone smart watch like an Apple watch with LTE integrated into it becomes available, it's going to open up the possibility for even more people who would look to it as a potential solution for them."

Former Apple product development head Jean-Louis Gassee suggested that the company is "playing the long game" with the watch and its capabilities for health and fitness,inan interview with UBS earlier this year.

Health apps were a priority underthe late Steve Jobs, who reportedly established a biomedical engineering team to work on technology to monitor blood sugar for diabetics. Tim Cook reportedlytested a blood monitoring accessory earlier this year.

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

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