Apple Issues Internal Memo Telling Employees Not To Guide Customers Where They Can Buy Watches: Report
Portfolio Pulse from Benzinga Neuro
Apple Inc. (AAPL) has instructed its customer service representatives not to direct customers to other retailers for purchasing Apple Watch Series 9 and Ultra 2 due to a patent infringement ruling by the ITC involving Masimo Corp. Despite the ruling, retailers like Walmart (WMT), Best Buy (BBY), and Target (TGT) can still sell the watches. Apple must halt sales by Christmas unless there is intervention from President Biden. JPMorgan analysts believe the financial impact on Apple may not be severe, and Masimo's CEO is open to settling the dispute.
December 20, 2023 | 7:53 am
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POSITIVE IMPACT
Best Buy remains able to sell Apple Watch Series 9 and Ultra 2, which may positively impact its sales following Apple's internal sales halt.
Best Buy's continued sales of the Apple Watch models could result in a short-term sales boost, as customers looking for these products may turn to retailers like Best Buy.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Target can sell Apple Watch Series 9 and Ultra 2 despite Apple's sales restrictions, potentially benefiting from increased demand.
Target's ability to continue selling the Apple Watch models could attract customers who can no longer purchase them directly from Apple, possibly leading to a short-term sales increase for Target.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Walmart can continue selling Apple Watch Series 9 and Ultra 2 despite Apple's internal memo due to a legal loophole.
Walmart's ability to continue selling the Apple Watch models in question could lead to a temporary increase in sales for these items, potentially benefiting Walmart in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Apple is facing a potential halt in sales of certain Apple Watch models due to a patent infringement ruling, but the financial impact may be mitigated according to JPMorgan analysts.
While the halt in sales of popular Apple Watch models could be seen as negative, the analysis by JPMorgan suggests the financial impact on Apple may not be significant. The situation is still developing, and the possibility of a settlement with Masimo could alleviate the issue.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100