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Apple to move health, fitness divisions to services in reorganization

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  Published in Health and Fitness on Friday, October 10th 2025 at 11:41 GMT by moneycontrol.com
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Apple Shifts Health & Fitness into Services, Expanding Its Ecosystem

Apple Inc. has announced a significant internal re‑organization that will transfer its Health & Fitness divisions—most notably Apple Health, Fitness+, and the HealthKit platform—into its Services group. The change, unveiled in a company‑wide memo that is now publicly available on Apple’s newsroom, reflects the tech giant’s growing emphasis on subscription‑based and data‑driven services as a key driver of future growth.

Why the Shift Matters

Apple’s Services division already generates more than $24 billion in annual revenue, according to the company’s most recent earnings report. It includes Apple Music, iCloud, Apple TV+, the App Store, Apple Pay, and Apple Card. By adding Health & Fitness to this group, Apple signals that it views health data as a strategic asset comparable to its media and financial services.

The re‑organisation aims to:

1. Deepen Integration Across Platforms
   With HealthKit now under Services, Apple can streamline data flow between the Apple Watch, iPhone, and iPad. This will enable more seamless health monitoring, improved workout tracking, and a tighter fit with its subscription services.

2. Create New Revenue Streams
   Apple Fitness+ is a subscription‑based service that already boasts a growing subscriber base. By placing it under the same umbrella as Apple Music and Apple TV+, Apple hopes to cross‑sell and bundle services, driving higher average revenue per user (ARPU).

3. Leverage Data for Partnerships
   Health & Fitness data offers unique insights that can attract partners in insurance, wellness, and fitness equipment. Apple’s Services team can work with third‑party developers and corporate wellness programs to create new ecosystems around health.

4. Strengthen the Company’s “Health Ecosystem” Narrative
   Apple has long marketed itself as the “unified health platform” that can replace multiple devices and apps. The move underscores the company’s commitment to becoming the primary hub for health information, data analytics, and wellness services.

Who’s in Charge

Apple’s Services chief executive officer, John Ternus, will now oversee the Health & Fitness portfolio. He reports directly to Tim Cook and is responsible for aligning all services—including the newly added health segment—with Apple’s broader product strategy.

Inside the Health & Fitness team, Lisa B. (Apple’s Vice President of Health & Fitness) will shift her reporting line to Ternus. She will continue to lead product development for Apple Health, Fitness+, and HealthKit, ensuring that new features stay true to Apple’s privacy‑first philosophy.

Impact on Apple’s Ecosystem

Apple Watch Integration
The Apple Watch will become even more central to Apple’s services strategy. Fitness+ already offers a library of over 200 workout videos that can be personalized by the Watch’s sensors. With HealthKit in the same family, Apple can provide more sophisticated recommendations—e.g., suggesting new workout plans based on heart‑rate variability or sleep patterns.

App Store & Developer Partnerships
Developers building health‑related apps will find a clearer path to monetization. The Health & Fitness division will work closely with Apple’s App Store team to streamline approvals and ensure that health apps meet strict privacy standards.

Apple Pay & Health Benefits
Apple has hinted at integrating health data with Apple Pay to offer health‑related incentives, such as reduced premiums for active users or rewards for meeting step goals. The move to Services could accelerate these initiatives, making Apple Pay a gateway to personalized health incentives.

Potential Challenges
Privacy remains a central concern. Apple has historically positioned itself as a champion of user data protection, and moving Health & Fitness into a revenue‑driven group could raise questions about how health data will be monetized. The company will need to navigate regulatory scrutiny, especially in jurisdictions with strict health data laws (e.g., GDPR in Europe, HIPAA in the United States).

External Context

The re‑organisation follows a trend of tech firms shifting from hardware to services to achieve higher margins and recurring revenue. For instance, Microsoft’s Surface hardware is increasingly supported by its cloud services, and Google’s Android platform has become a hub for its Play Store, Google Cloud, and YouTube services. Apple’s latest move is in line with this shift toward “platform + service” models that maximize customer stickiness.

In addition to Health & Fitness, Apple has recently announced a new “CareKit” initiative, designed to partner with medical institutions for clinical trials and remote patient monitoring. This initiative will likely sit under the same Services umbrella, further cementing Apple’s ambitions to become a comprehensive health partner.

Bottom Line

Apple’s decision to merge Health & Fitness with its Services division is a strategic pivot that positions the company to better monetize its health ecosystem, deepen integration across devices, and create new revenue streams. By placing health data under the same umbrella as Apple Music and Apple Pay, the company is signaling that health is as much a service as entertainment or payment. While privacy concerns and regulatory scrutiny will continue to loom, the re‑organisation is a clear indication that Apple’s future growth will be driven not just by new hardware, but by a rich tapestry of subscription‑based services that keep users tethered to its ecosystem.