Apple's $17B Smartwatch Business At Risk, Cutting-Edge AI Tech 'HUGS' And More: This Week In Appleverse
Portfolio Pulse from Benzinga Neuro
Apple Inc. (AAPL) faces a potential U.S. ban on its $17 billion smartwatch business due to patent infringement allegations by Masimo Corp. (MASI). Apple is modifying algorithms to avoid the ban. Apple Card Savings Account interest rate has increased to 4.25% APY. Apple instructed customer service not to guide customers to watch retailers, affecting sales at Walmart (WMT), Best Buy (BBY), and Target (TGT). Apple unveiled AI tech 'HUGS' for digital avatars and is under DOJ scrutiny for blocking the Beeper app.
December 24, 2023 | 12:43 pm
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NEGATIVE IMPACT
Best Buy's sales of Apple Watches could be influenced by Apple's recent legal challenges and the internal memo to customer service representatives.
Apple's internal memo could lead to a decrease in customer referrals to Best Buy for Apple Watch purchases, potentially affecting sales.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Target's Apple Watch sales might be impacted by Apple's legal situation and the company's guidance to customer service not to direct customers to third-party retailers.
The guidance from Apple to its customer service team may lead to fewer referrals to Target for Apple Watch sales, which could negatively impact their revenue from these products.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Walmart may see an impact on its sales of Apple Watches due to Apple's legal issues and the memo instructing Apple customer service not to direct customers to retailers.
While Walmart can continue selling Apple Watches, the directive from Apple may reduce customer referrals and potentially impact sales.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Apple's smartwatch business is at risk due to patent infringement issues, but the company is actively working on a solution. The increase in Apple Card Savings Account interest rate could attract more users to the service.
The threat of a ban on Apple's smartwatch could negatively impact sales, but proactive measures to modify the product could mitigate this risk. The increased savings rate is positive but may not significantly impact the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Masimo Corp. is involved in a patent infringement case against Apple, which could lead to a ban on Apple's smartwatch sales if the dispute is not resolved.
The outcome of the patent infringement case could be beneficial for Masimo if it leads to a favorable settlement or licensing agreement with Apple.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70