Apple Scrambles To Save $17B Smartwatch Business From Impending Ban: Report
Portfolio Pulse from Ananya Gairola
Apple Inc. (AAPL) is facing a potential U.S. ban on its smartwatch products, which could impact its $17 billion smartwatch business. The International Trade Commission is set to enforce the ban on Dec. 25 over a patent infringement claim by Masimo Corp. (MASI) regarding blood oxygen level monitoring technology. Apple is attempting to modify the technology to comply with the ban and has begun preparing its stores for the change, including halting sales of certain models. Masimo insists that a software fix is not enough and hardware changes are necessary. The ban could significantly affect Apple's revenue and highlights the legal complexities in the tech industry.
December 19, 2023 | 1:47 am
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POSITIVE IMPACT
Masimo Corp. has accused Apple of infringing on its patent for blood oxygen level monitoring, leading to a potential ban on Apple's smartwatches that could impact negotiations or future settlements.
Masimo's patent claim is the catalyst for the potential ban on Apple's smartwatches. While the outcome could lead to a settlement or a need for Apple to change its hardware, it positions Masimo favorably in the short term, potentially benefiting MASI's stock.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Apple Inc. is at risk of a U.S. ban on its smartwatch products due to a patent infringement claim by Masimo Corp., potentially affecting its $17 billion smartwatch business and overall revenue.
The impending ban directly targets Apple's smartwatch line, a significant revenue source. The urgency to modify the technology and halt sales of certain models indicates a high potential for negative short-term impact on AAPL's stock price.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100