If you visualize technology progressing through time, there is an obvious merging of human and machine. Computers were large, now they are so small, you leave your Air Pods in your ears for hours because you forget they are still in.
Imagine another 50 years. Computers will most certainly be seamlessly connected to us in some way.
Imagine a device that can read your mind and give you what you want before asking? What if you're more intelligent just because you buy a specific product? What about a device that is proven to lengthen your life just by using it?
Biological research and health are what's necessary to get there.
The interesting things happen at the intersections. Who could compete?
Steve seemed like a smart guy. Maybe if he saw things this way he would bet the company as you say.
Make sense, they'd rather concentrate on health. There's an obvious inroad there with wearables.