Apple Watch Sales Halted Amid Patent Dispute with Masimo Corporation

investing.com:

Quiver Quantitative — In a significant development, Apple (NASDAQ:AAPL) has announced the discontinuation of sales for its Apple Watch Series 9 and Ultra 2 models in the United States, starting December 21 online and December 24 in physical stores. This decision, reported by 9to5Mac and confirmed by TechCrunch, arises from a patent dispute with medical technology firm Masimo (NASDAQ:MASI). over the blood oxygen sensor technology used in these models. The International Trade Commission (ITC) ruled in favor of Masimo in October, leading to a presidential review period expiring on December 25. Apple’s decision to halt sales is a proactive measure in anticipation of the final outcome of this review.

This halt in sales is particularly impactful for Apple, as the iPhone and Apple Watch are major revenue generators for the tech giant. The timing coincides with the busiest quarter of the year, posing a significant challenge for Apple. Notably, the Apple Watch SE, which lacks the blood oxygen sensor, is unaffected by this decision. Apple has expressed disagreement with the ITC's ruling and is exploring legal and technical avenues to ensure the availability of the affected Apple Watch models. They plan to appeal the decision, which they consider erroneous.

Market Overview: -Apple faces a last-minute Christmas crunch as it halts sales of its newest Apple Watch models, Series 9 and Ultra 2, in the US. -A patent dispute regarding the blood oxygen sensor technology, won by medical tech firm Masimo, forces the preemptive move. -The decision, effective December 21st online and December 24th in stores, throws a wrench into Apple's busiest quarter. -While iPhone sales remain unaffected, the impact on Apple Watch, a key revenue driver,