Apple's Ban On Smartwatches Could Result In Sales Loss Exceeding $300-$400M, Says Dan Ives: 'Couldn't Have Come At A Worse Possible Time'
Portfolio Pulse from Benzinga Neuro
Apple Inc. (NASDAQ:AAPL) has suspended sales of its Apple Watch Series 9 and Ultra 2 models in the US due to a patent dispute with Masimo, as per an ITC ruling. This could lead to a sales loss of $300-$400M, a significant hit during the holiday season. Despite this, Apple's stock remains stable and the company is exploring legal and technical options to resume sales. The impact on Apple's overall revenue is considered not severe by JPMorgan analysts.

December 20, 2023 | 3:14 am
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NEGATIVE IMPACT
Apple's suspension of Apple Watch Series 9 and Ultra 2 sales due to a patent dispute could lead to a $300-$400M sales loss, impacting holiday revenue.
The suspension of key Apple Watch models during the critical holiday sales period is likely to negatively impact Apple's short-term revenue. Although the overall financial impact is not expected to be severe, the timing of the suspension could affect investor sentiment and the stock price. The company's stable stock price suggests that the market may have already priced in the potential impact or believes in Apple's ability to mitigate the situation. However, the direct mention of a significant sales loss provides a negative outlook for the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100