Apple Appeals Against Smartwatch Sales Ban After White House Declines To Interfere
Portfolio Pulse from Ananya Gairola
Apple Inc. (AAPL) is appealing a sales ban on its smartwatches imposed by the U.S. International Trade Commission due to a patent dispute with Masimo Corp. (MASI). The White House declined to intervene, and Apple has stopped selling its Series 9 and Ultra 2 watches in its online store and U.S. retail outlets. Apple has submitted an emergency motion for a temporary suspension of the ban and released a software update to address the patent issue. The U.S. customs agency will decide on the approval of these changes on Jan. 12. The ban could cost Apple $300-$400 million in holiday sales.
December 27, 2023 | 4:35 am
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POSITIVE IMPACT
Masimo Corp. is involved in a patent dispute with Apple, which has led to a sales ban on certain Apple Watch models. The dispute centers on blood-oxygen sensor patents owned by Masimo.
Masimo's enforcement of its patents against a major player like Apple could be seen positively, reflecting the value and enforceability of its intellectual property. However, the outcome of the appeal and software update review could impact the situation.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Apple is appealing a sales ban on its smartwatches and has stopped sales of Series 9 and Ultra 2 models due to a patent dispute with Masimo. A software update has been released to address the issue, with a customs decision pending on Jan. 12.
The sales ban on popular Apple Watch models could significantly impact Apple's revenue, as indicated by the potential $300-$400 million loss during holiday sales. The outcome of the customs decision will be critical for short-term stock performance.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100