Apple Watch Sales Pause Over Patent Issues Unlikely To Dent Revenue Significantly, Experts Weigh In
Portfolio Pulse from Piero Cingari
Apple Inc. (AAPL) has halted sales of the Apple Watch Series 9 and Apple Watch Ultra 2 in the U.S. due to a patent infringement ruling by the ITC favoring Masimo. Despite this, JPMorgan analysts believe the impact on Apple's revenue will be minimal, potentially affecting only 1% of total revenue. Apple intends to appeal the decision and has requested the Biden administration to review it. Apple's stock price saw a slight increase following the news, and JPMorgan maintains an Overweight rating with a price target of $225.
December 19, 2023 | 10:38 pm
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NEUTRAL IMPACT
Apple's halt of Apple Watch Series 9 and Ultra 2 sales in the U.S. due to a patent dispute is not expected to significantly impact revenues, with JPMorgan maintaining an Overweight rating and a $225 price target.
The cessation of sales for the Apple Watch Series 9 and Ultra 2 is a direct legal issue for Apple, but analysts predict a minimal revenue impact, suggesting a neutral short-term effect on the stock price. The company's proactive appeal and request for a review, along with the recent stock price resilience, support this outlook.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 100