Court Halts Apple Watch Sales Ban, Offering Hope for $17 Billion Business”
From Quiver Quantitative:
Apple has secured a temporary reprieve from a U.S. sales ban on its latest smartwatches, including the Apple Watch Series 9 and Ultra 2, thanks to a recent court ruling in the midst of Apple’s ongoing patent infringement dispute with medical device maker Masimo. The U.S. International Trade Commission (ITC) had earlier ruled in favor of Masimo, resulting in Apple halting sales of these smartwatches, which are a significant part of its estimated $17 billion business. The Washington appellate court has issued an interim stay, allowing Apple to potentially resume sales until the ITC responds by January 10th.
The controversy began when the ITC found Apple had infringed patents related to blood-oxygen saturation measurement technology, prompting Apple to remove the affected smartwatches from its website and stores. In response, Apple has developed a software update that it believes addresses the infringement issue. The update’s design is currently under review by the U.S. customs agency, with a decision expected by January 12th.
While Masimo declined to comment on the latest court ruling, its shares experienced a decline following the news. Meanwhile, Apple’s stock remained relatively stable. The legal battle has implications not only for Apple’s sales but also for its customers, particularly those owning out-of-warranty Apple Watch Series 6, 7, and 8 models. These models also include the contested blood-oxygen feature and were not eligible for hardware repairs during the ban. Apple aims to overturn the ITC’s decision and fully reinstate its smartwatch lineup in the U.S. market.
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