Apple Watch Versions Minus Blood Oxygen Feature To Go On Sale In US As Cupertino Devises Way To Sidestep Looming Ban
Portfolio Pulse from Ananya Gairola
Apple Inc. (AAPL) is releasing versions of the Apple Watch Series 9 and Apple Watch Ultra 2 in the U.S. without the blood oxygen feature due to an intellectual property dispute with Masimo Corporation (MASI). The dispute led to a temporary sales halt in December 2023 after the ITC found Apple infringed on Masimo's patents. Apple is appealing the decision but has removed the feature to comply with the ruling and minimize sales disruption. The company reported $39.8 billion in wearables sales in fiscal 2023.
January 18, 2024 | 2:30 am
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POSITIVE IMPACT
Masimo's patent dispute with Apple has led to a temporary halt on sales of Apple’s watches with the blood oxygen feature in the U.S., potentially impacting Masimo's position in the market.
The ongoing patent dispute with Apple could strengthen Masimo's competitive position if the ban is upheld, potentially leading to a positive short-term impact on MASI's stock price. However, the final outcome of the appeal remains uncertain.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Apple is selling modified Apple Watch models in the U.S. to avoid a ban due to a patent dispute with Masimo. This move aims to maintain sales momentum despite the legal challenge.
Apple's decision to sell modified watches is a strategic move to maintain sales, which could keep investor confidence steady. However, the lack of the blood oxygen feature might affect consumer demand, creating uncertainty about the short-term impact on AAPL's stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90