Masimo Might See Potential Royalty Windfall From ITC's Exclusion Order On Apple Watch: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
The International Trade Commission (ITC) has upheld a decision that Apple Inc. infringed on Masimo Corporation's patent rights related to a light-based technology used in blood-oxygen-level monitoring. If Masimo is successful, Apple might be forced to pay royalties, potentially generating $50 million-$100 million of annual revenue for Masimo. However, Apple is expected to appeal the decision, which could delay any potential royalty payments. Masimo's recent acquisition of Sound United and its potential for growth in the medical business were also highlighted.
October 27, 2023 | 6:44 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Apple Inc. has been found guilty of infringing Masimo's patent rights, which could lead to significant royalty payments. However, an expected appeal could delay this.
The upheld decision by the ITC could potentially lead to significant financial implications for Apple in the form of royalty payments. However, the expected appeal could delay or even overturn this decision, creating uncertainty.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Masimo Corporation could see a significant increase in revenue if it is successful in its patent infringement case against Apple. However, an expected appeal by Apple could delay this. The company's recent acquisition and growth potential were also highlighted.
The upheld decision by the ITC could potentially lead to significant financial gains for Masimo in the form of royalty payments. However, the expected appeal by Apple could delay or even overturn this decision. The company's recent acquisition and growth potential were also highlighted as positive factors.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 100