An Apple Watch ban is the last thing this gizmo maker needs
ITC) in October, giving 60 days notice on a ban that takes effect on Christmas. Apple’s announcement that it would halt sales early has been seen as a potential last-gasp effort to force the US president’s hand, though White House interventions in such matters are rare, particularly when the row is between two US companies. The ITC is no Scrooge and Apple does have questions to answer.
As well as its patent claims, Masimo has taken Apple to court accusing it of stealing trade secrets. Apple, Masimo contended, set up meetings between the companies to discuss innovations and a potential partnership that never materialized. Apple then poached key employees.
The end result, Masimo contended, was theft of trade secrets and an Apple blood-oxygen sensor too similar in design and function to what Masimo had produced. A jury trial on those matters ended in stalemate earlier this year. Apple disputes the accusation of infringement and says it plans to appeal the ITC ruling.
The bad news is in keeping with much of Apple’s fortunes this year. Last month, it recorded its fourth consecutive quarter of revenue decline, its worst run in two decades. The company warned that revenue in the October-December quarter, which Apple counts as its first of fiscal year 2024, would be flat.
Analysts, as polled by Bloomberg, are expecting the company to just about sneak back to growth, but it’s touch-and-go and a ban on watch sales during the festive season won’t help. On top of all this, worries persist around Apple’s business in China. Last week, Beijing broadened its ban on the use of Apple and other foreign devices.
Investors haven’t lost faith yet, though. The company’s stock is up more than 50% this year. While the smartwatch is not as big a
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