The body temperature measurement feature was widely expected to be part of Apple, Inc.'s (NASDAQ:AAPL) Watch 7 iteration but it was not to be.
Talks of Apple adding the feature to the upcoming Watch iteration are now gaining ground.
What Happened: The Apple Watch 8 series due to be launched in the second half of 2022 could take body temperature, Apple analyst Ming-Chi Kuo said in a tweet. Incorporation of the feature depends on the algorithm meeting Apple's high standard requirements before mass production begins, he added.
Precise measurement of body temperature has been a challenge, as the skin temperature varies according to the outside environment, the TFI Securities analyst said.
"A smartwatch can't support core temperature measurement in terms of hardware, so it needs an excellent algorithm to work together," the analyst said.
Samsung's Galaxy Watch 5 due in the second half might not support body temperature measurement due to algorithm limitations, Kuo said.
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Why It's Important: Apple's Wearable, Home & Accessories segment — which the Watch is part of — generated $8.8 billion in revenue in the March quarter. This accounted for roughly 9% of the total revenue.
Apple commanded a 30% share of the smartwatch market in 2021 and retained its leadership position, according to market research firm Counterpoint Research.
"The global smartwatch market's good growth in 2021 is meaningful in itself, but it is more meaningful in that it makes us look forward to future growth. With their ability to monitor important health parameters like blood pressure, ECG and SPO2, these devices are becoming popular," according to analyst Sujeong Lim.
If Apple can manage to incorporate body temperature measurement, it could serve as another pulling factor and help increase the company's dominant position in the smartwatch market.
Apple closed Friday's session down 3.66% at $157.65, according to Benzinga Pro data.
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