Reports indicate a decline in Apple stocks after reports that it has stopped selling its latest smartwatches in the United States.

News Summary

Apple Inc. is halting the sale of its latest smartwatches recently launched in the United States due to a ruling based on patent infringement. The U.S. International Trade Commission upheld a judge’s decision in October that Apple violated patents held by medical technology company Masimo Corp. Apple intends to appeal this decision and return the watches to the market in the U.S. as soon as possible. Apple’s shares fell after the announcement of the suspension of watch sales.

Details

Reports indicate that Apple Inc. has decided to suspend the sale of its latest smartwatches recently launched in the United States due to a ruling based on patent infringement. According to a report from 9to5 Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will not be available in the U.S. starting this week. This decision follows an October ruling by the U.S. International Trade Commission after a patent dispute with American technology company Masimo Corp.

The initial complaint dates back to 2021 and concerns blood oxygen sensor technology first used in the Series 6 watch. Masimo claimed that Apple “began hiring Masimo employees, starting with Masimo’s Chief Medical Officer. In the fall of 2020, Apple introduced the Series 6, which was manufactured in Asia.”

Apple announced that it would appeal the decision when the presidential review period ends on December 25 and accused Masimo of blocking a product that could save American consumers’ lives. Apple can appeal through the U.S. Court of Appeals for the Federal Circuit, but there’s also a chance for the Biden administration to overturn the U.S. International Trade Commission’s ruling before that. Masimo’s patents will expire in August 2028.

This decision is considered a blow to Apple, which reported net sales of $9.32 billion in the wearables, home, and accessories segment during the last quarter that ended in September, accounting for nearly 10% of total sales.

Apple’s shares fell by 1% to $195.64 around 1:00 PM Eastern Time on Monday, after dropping to a low of $194.39 earlier in the session. The stock is up about 56% for the year.

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Source: https://www.investopedia.com/apple-shares-fall-after-halting-watch-sales-8417422