Courts Reinstate Ban On Apple Watches With Blood Oxygen Sensors
Portfolio Pulse from Adam Eckert
A federal appeals court has reinstated a ban on U.S. imports of Apple Watches with blood oxygen sensors, upholding a U.S. International Trade Commission decision that Apple violated two Masimo Corp patents. Apple's attempt to pause the ban during an appeal was denied, and the ban will be effective from Thursday. Apple's wearables segment, including Apple Watches, generated $8.28 billion last quarter. The company's stock was down 0.78% following the news.

January 17, 2024 | 8:37 pm
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POSITIVE IMPACT
Masimo Corp holds the patents that led to the ban on Apple Watches with blood oxygen sensors, which could strengthen its competitive position.
The enforcement of the ban on Apple Watches may benefit Masimo Corp by reducing competition in the market for devices with blood oxygen sensors. This could potentially lead to increased interest in Masimo's products or licensing opportunities.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Apple Inc. faces a reinstated ban on imports of Apple Watches with blood oxygen sensors, which could affect its wearables revenue.
The reinstatement of the import ban could lead to a decrease in available inventory for Apple Watches with blood oxygen sensors, potentially affecting sales and revenue in the wearables segment. The negative market reaction is reflected in the stock's price drop.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90