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Apple Wins Temporary Reprieve in Smartwatch Sales Ban

Apple has secured a temporary victory in its legal battle over smartwatch sales. A U.S. appeals court has granted a pause on the government commission's import ban on Apple's flagship smartwatches.

The ban was imposed due to a patent dispute with Masimo, a California-based medical technology company. While the court's decision allows Apple to resume sales for now, the final outcome of the case could have significant financial implications for both companies.

The U.S. International Trade Commission (ITC) had ruled that Apple had infringed on Masimo's patents related to medical monitoring technology. The ongoing dispute could potentially result in a costly settlement or require Apple to find a technological workaround. However, analysts believe that the negative publicity surrounding the lawsuit may have a more significant impact on Apple's reputation than any financial losses.

Following the court's decision, Masimo's shares closed 4.6% lower, while Apple's shares closed at $193.15. Apple expressed its satisfaction with the ruling, stating that it is "thrilled to return the full Apple Watch lineup to customers in time for the new year." The company announced that the Apple Watch Series 9 and Apple Watch Ultra 2, including the blood oxygen feature, will be available for purchase again in the United States.

Masimo, on the other hand, declined to comment on the court's decision. The company had accused Apple of stealing its pulse oximetry technology and incorporating it into its smartwatches. Apple, in turn, has countersued, claiming that Masimo's legal actions are an attempt to clear a path for its own competing smartwatch.

While the court's ruling allows Apple to resume sales temporarily, the case is far from over. The appeals court will consider Apple's motion for a longer-term pause during the appeals process. The ITC has until January 10 to respond to Apple's request. Meanwhile, Apple is exploring legal and technical options to address the situation.

The outcome of this legal battle could have significant implications for the wearable technology market and Apple's future health-wearable products. The company's wearables, home and accessory business, which includes the Apple Watch, generated $8.28 billion in revenue during the third quarter of 2023.

  • Apple secures temporary victory in smartwatch sales ban

  • U.S. appeals court grants pause on import ban

  • Final outcome could have financial implications for both companies

  • Negative publicity may impact Apple's reputation


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