iHealth Aims to Become the 'Apple of Digital Health': Ninebot Medical Files Prospectus

When discussing blood pressure monitors, it is impossible not to mention Andon Health Co., Ltd. (hereinafter referred to as “Andon Health”). As early as 1995, Andon Health independently developed its first KD-322 electronic blood pressure monitor, which was the first truly commercialized oscillometric electronic blood pressure monitor in China and obtained a CPA (Pattern Approval) certificate. Two decades later, Andon Health’s products are exported to more than 70 countries worldwide through distributors across the globe.

Today, this traditional manufacturer of electronic blood pressure monitors has emerged as a rising star in the internet healthcare sector. Its iHealth product series, developed in collaboration with Apple Inc., marks Andon Health’s transformation into the internet healthcare space. Why did Andon Health undergo this transformation, and how was it carried out? In response, VCBeat interviewed Liu Yi, Chairman of Andon Health and founder of iHealth.

The Origin of iHealth

Liu Yi, Chairman of Andon Health and Founder of iHealth

Liu Yi introduced that Andon Health entered the international market in 2002, gradually evolving from a niche player filling market gaps into a mainstream manufacturer of electronic blood pressure monitors, with sales rising year by year. Since its establishment, Andon Health has consistently sought to develop differentiated products to attract more customers. In 2007, the company attempted to connect its blood pressure monitors to PCs, but the outcome was less than ideal due to cumbersome usability; users had to turn on their computers and connect the monitor via USB to take measurements.

In 2009, Andon Health attempted to connect mobile phones with blood pressure monitors and thus considered the iPhone. Liu Yi recalled that at the time, Andon Health contacted Apple’s MFI (Made for iOS) department, which is specifically responsible for Apple-related accessory hardware. Prior to this, Apple’s hardware partners had all come from entertainment-related industries such as music and gaming, and had not ventured into the health management sector. “We proposed connecting mobile phones with blood pressure monitor hardware to explore collaboration in personal health management, which aligned perfectly with Apple’s vision,” Liu Yi told VCBeat. Apple introduced the concept of using the iPhone to measure blood pressure at the 2010 Apple Worldwide Developers Conference (WWDC).

Liu Yi explained that Apple initially suggested Andon Health partner with a more well-known blood pressure monitor manufacturer for OEM production. However, Andon Health believed this presented an ideal opportunity to establish its own international brand. After extensive efforts, Andon Health successfully registered the iHealth trademark and established iHealth Labs in Silicon Valley in 2010.

Every Industry Should Have Its Own “Steve Jobs”

The establishment of iHealth marked Andon Health’s transformation into the internet sector.

The drivers behind Andon Health’s transformation stemmed from both internal and external pressures. At the time, the appreciation of the renminbi and rising labor costs continuously squeezed Andon Health’s profit margins. Internally, the company had long aspired to build its own brand on the global stage. More importantly, Andon Health recognized the opportunity for industry reshuffling brought about by the rapid development of mobile internet. “Companies that effectively integrate with mobile internet will emerge as future industry leaders, while those that fail to do so will be eliminated.” This was Liu Yi’s prediction for the future.

Liu Yi believes that every industry needs its own “Steve Jobs” to define the industry’s future in the mobile internet era. The iPhone, as defined by Steve Jobs, is essentially a mobile internet terminal, which has disrupted the smartphone industry. “The current situation is quite similar to the early days of electricity. Electricity provided only the infrastructure, while inventions such as refrigerators, televisions, washing machines, and computers still needed to be created. Although mobile internet terminals have emerged, products or business models integrating various industries with these terminals have yet to appear. Whoever can define the products for their industry in the context of the mobile internet will become the ‘Steve Jobs’ of that industry. Andon Health is striving toward this goal in the field of mobile healthcare.”

Liu Yi also reached the following conclusion: The logic of “big fish eat small fish” does not hold in the mobile internet era. For instance, industry giants such as Nokia and Motorola collapsed under the impact of the mobile internet revolution. In contrast, smaller companies are more likely to achieve rapid growth during industry transitions. A case in point is iHome, a well-known audio brand that first launched speaker products compatible with Apple devices. Benefiting from Apple’s market expansion, iHome rapidly grew from an obscure startup into a company capable of competing with established brands like Sony Audio.

Liu Yi told VCBeat that iHealth products immediately attracted widespread attention upon their debut in the U.S. market. “Many distributors proactively approached us to discuss partnerships, which was unimaginable in the past.”

At the 2013 CES, iHealth’s U.S. staff introduced their products to journalists.

iHealth initially entered the market through Europe and the United States. Liu Yi stated that these markets are mature, with high smartphone penetration rates, relatively affordable Apple products, and a strong culture of willingness to pay among Apple users. In addition to its partnership with Apple, iHealth has established strategic collaborations with major U.S. retailers such as CVS Pharmacy, Best Buy, and Walgreens, which serve as distributors for iHealth products.

While transitioning to the internet, Andon Health also adjusted its overall strategic planning. Previously, the core of Andon Health’s business was primarily hardware sales; now, hardware serves as an entry point. Andon Health aims to accumulate a large user base through its hardware devices, generate big health data, and subsequently provide related medical services, thereby establishing a personal health management platform.

iHealth and Xiaomi: A Mutually Beneficial Win-Win Partnership

In addition, iHealth has partnered with WeChat and JD.com, and introduced Xiaomi as a strategic investor to leverage its resources and platform for accelerating its transformation.

In 2014, Xiaomi invested $25 million in iHealth, acquiring a 20% stake. According to Liu Yi, beyond selling products on the Xiaomi platform, iHealth would engage in deep collaboration with Xiaomi in areas such as user experience, product development, and cloud services. The two companies jointly launched the smart blood pressure monitor “Ai Jia Kang,” which is fully compatible with Xiaomi smartphones and priced at just RMB 199 on Xiaomi’s online store—one-quarter the price of its iOS version. During this year’s “Mi Fan Festival” in May, “Ai Jia Kang” achieved single-day sales exceeding 16,000 units, setting a new record for daily sales of a single blood pressure monitor model.

Liu Yi revealed that Andon Health has had a 10-person team stationed at Xiaomi for over six months. This team, comprising marketing specialists, software developers, and product managers, is primarily focused on the third iteration of “iHealth Care,” while also learning from Xiaomi. Liu Yi stated that the team collaborates closely with Xiaomi in areas such as product design, software development, and user experience, actively seeking their input. As iHealth’s partner in China, Xiaomi provides the cloud server infrastructure for iHealth products in the domestic market. These products are sold mainly through Xiaomi’s online platforms, with Xiaomi handling all pre-sales, in-sales, and after-sales services.

Liu Yi frankly stated that iHealth hopes to leverage Xiaomi’s platform to penetrate the domestic market and rapidly expand its user base in China. Xiaomi will also make every effort to facilitate iHealth’s growth, as iHealth is a key component of Xiaomi’s ecosystem.

Full Product Line Launch

Among iHealth’s extensive product portfolio, the iHealth BP7 stands out. This product was honored with the Red Dot Award in 2012 and the iF Design Award in 2014. The iHealth BP7 is a medical-grade blood pressure monitor that has received certifications from the European Society of Hypertension (ESH), the U.S. Food and Drug Administration (FDA), the Australian Therapeutic Goods Administration (TGA), and the European CE mark. It delivers accurate readings even when users are walking during measurement.

iHealth BP7

The iHealth BP7 also features several user-friendly designs specifically tailored for the elderly. For instance, its unique smart sensor-activated power-on function allows the main unit to silently initiate intelligent monitoring as soon as the user slips their arm into the cuff. By opening the companion app “iHealth MyVitals” and tapping “Measure,” the device automatically connects and performs the measurement without requiring manual operation. After measurement, data such as systolic pressure, diastolic pressure, pulse rate, and heart rhythm are displayed within the app, along with WHO blood pressure category alerts and professional recommendations from hypertension associations. The software also offers cloud storage, blood pressure trend analysis, result sharing, and chart-based management capabilities.

Liu Yi stated that iHealth currently offers over a dozen products across five series: blood pressure, blood glucose, weight, blood oxygen, and fitness. The company plans to develop additional products in the future, including ECG, 24-hour blood pressure monitoring, and maternal and infant care devices.

In terms of sales channels, iHealth adopts a direct sales plus agency model in the domestic market. In European and American markets, iHealth conducts sales through its subsidiaries, while in the Asia-Pacific region, it sells through local distributors. In 2014, sales revenue in Europe amounted to RMB 34 million, and in the United States, it reached RMB 27 million.

Regarding iHealth’s future revenue model, Liu Yi revealed that the gross margin on iHealth’s hardware is currently around 40%–50%, with service fees to be charged later as users engage with the accompanying software.

When discussing Andon Health’s competitors, Omron and Yuwell, Liu Yi noted that Omron has an 82-year history and substantial brand influence. If competing solely in the traditional blood pressure monitor segment, Andon Health still has a long way to go. However, with its future focus on mobile internet-enabled health products, Andon Health sees opportunities to surpass Omron. Meanwhile, Yuwell primarily sells within China and has limited export operations.

Liu Yi believes that iHealth products have two main advantages: First, the company offers a full product line. There are not many similar companies in China that provide a comprehensive range of products; some only offer specific items such as blood pressure monitors or blood glucose meters. “A full product line enhances user stickiness. Users who adopt our hardware will inevitably use our accompanying software, much like with Apple. If users switch to other brands, their historical data remains stored in our cloud, making migration cumbersome. Moreover, as we offer a complete series of products, users can basically find everything they need from our company.”



Second, all iHealth products have obtained FDA, CFDA, and medical CE certifications, with 42 patents related to iHealth. The iHealth series consists of medical-grade products, rather than ordinary casual fitness devices. The advantages of medical-grade products make it relatively easier for Andon Health to negotiate collaborations with medical institutions and insurance companies.

Liu Yi revealed that the company’s future plan is to develop a full product line for personal health management, covering key health indicators such as blood pressure, blood glucose, and electrocardiogram (ECG). Secondly, within three to five years, it aims to leverage the big data acquired through iHealth to integrate its products with medical resources, thereby establishing a comprehensive personal health management platform.

During its transition to the internet sector, Andon Health also encountered certain challenges. “The process of transforming from a traditional manufacturing enterprise into a mobile internet company is quite painful; it is a journey from zero to one,” Liu Yi admitted. As a publicly listed company, Andon Health needs to strike a balance between financial performance and strategic transformation, a equilibrium that is difficult to maintain.

Over the past two years, Andon Health has experienced a certain degree of decline in its performance, primarily due to increased investments in its internet initiatives. Liu Yi stated that over the past two years, Andon Health incurred relatively high R&D and market expansion expenses as part of its transformation. The company’s R&D team has grown from 40 members in 2010 to nearly 400 currently. Moreover, Andon Health has established subsidiaries in Silicon Valley and Paris, hiring local staff in these regions. According to Andon Health’s 2014 annual report, the company’s administrative expenses amounted to RMB 120.47 million, representing a 66.55% increase from the previous period, mainly driven by higher compensation costs resulting from the expansion of teams in Europe and the United States. “Although sales revenue from the iHealth product series has increased, the magnitude of this growth has not offset the associated expenses.”