Joe Biden Vs. Apple Watch: White House Upholds Ban, Masimo CEO One Of President's 'Closest Friends'
Portfolio Pulse from Chris Katje
The U.S. International Trade Commission (ITC) banned certain Apple Watch models due to patent infringement on Masimo Corporation's blood oxygen-reading technology. The White House, with the power to reverse the ban, did not intervene, but a federal appeals court suspended the ban. Masimo CEO Joe Kiani, a Biden supporter and donor, is connected to President Biden, raising conflict of interest concerns. The case could force Apple to license the technology or find alternatives. The ban's suspension allows Apple to continue sales, which are significant for its revenue.
December 28, 2023 | 8:30 pm
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NEUTRAL IMPACT
Apple faces a potential loss of $300-$400 million in holiday sales due to the ITC ban on certain Apple Watch models, although the ban is currently suspended by a federal appeals court. The ongoing legal dispute with Masimo could lead to licensing costs or the need for alternative technologies.
The suspension of the ban mitigates the immediate financial impact on Apple, but the ongoing legal dispute poses a risk of future costs related to licensing or technology changes. The importance is high due to the revenue generated by the Apple Watch, but the confidence is not at 100 due to the uncertainty of the legal process.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Masimo Corporation's patent victory against Apple could lead to licensing revenue or a competitive advantage if Apple is forced to alter its technology. However, the connection between Masimo's CEO and President Biden raises conflict of interest concerns that could affect public perception and the company's reputation.
The patent victory is a positive development for Masimo, potentially leading to financial gains or a stronger market position. However, the CEO's relationship with President Biden and the potential conflict of interest could negatively influence the company's reputation, which is reflected in the confidence score.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80