After a defeat in a patent dispute, Apple stopped sales of the Apple Watch Series 9 and Apple Watch Ultra 2 in the USA shortly before Christmas, even before a previously imposed US import ban took effect. An appeals court has now temporarily suspended this again, but Apple has still suffered a loss in sales, which overall should be bearable.
• Apple temporarily stopped sales of Apple Watch Series 9 and Apple Watch Ultra 2 in the US
• Analyst sees sales losses in the three-digit million range
• Solution to patent issues needed
In October, the US trade authority International Trade Commission (ITC) imposed an import ban on certain models of the Apple Watch computer watch, which have a sensor for measuring the oxygen content in the blood. The technology used violates the patents of the US medical technology company Masimo and is used by Apple without the company having acquired the relevant licenses, it was said. The affected devices, specifically the Apple Watch Series 9 and Apple Watch Ultra 2, could initially continue to be sold in the USA after the ruling, as the US government had 60 days to examine it and veto it set. However, on Boxing Day, White House Trade Representative Katherine Tai announced that they would not veto the ITC’s decision. Apple was no longer allowed to import the affected devices into the USA since December 26th and was therefore no longer able to sell them there. However, the company went to an appeals court on the same day and won a victory there: the US import ban for the company’s computer watches was temporarily suspended again on the evening of December 27th and Apple announced that it would stop selling in the USA from December 28th December to resume.
Apple lost this income due to the Apple Watch sales stop during the Christmas business
However, before Christmas, on December 21st, the iGroup had stopped sales of the Apple Watch Series 9 and Apple Watch Ultra 2 via its online shop in the USA as a precautionary measure. After December 24th, Apple no longer sold existing inventory in physical Apple Stores. This sales stop lasting several days came in the middle of the important Christmas business for the Cupertino company, but it probably only set it back moderately. According to Business Insider, well-known tech analyst Dan Ives from Wedbush Securities estimated that Apple lost a total of around $300 to $400 million in revenue during these days. According to Ives, the precautionary temporary sales stop does not move the needle very much for Apple, “but it could not have come at a worse time.” Christmas business is generally considered to be the busiest time of the year. According to “Business Insider,” unnamed analysts assume that Apple will generate a total of around $120 billion from October to the end of December 2023.
In view of this immense total amount, up to 400 million US dollars less is actually just a drop in the ocean. Apple shares also reacted calmly to the developments: they most recently closed at 193.58 US dollars (as of the closing price on December 28, 2023), only slightly below their annual high of 199.62 US dollars, which was reached in mid-December.
Apple is working on solving patent problems
It is still unclear how the patent dispute will continue. The US Trade Commission (ITC) now has until January 10th to respond to Apple’s request for a longer suspension of the import ban. In addition to the legal process, according to information from “Bloomberg”, Apple is apparently also trying to circumvent the affected patents with a software change. According to “dpa-AFX”, completely deactivating the measuring sensor could also be a way to avoid further disputes.
In the long term, however, Wedbush expert Dan Ives assumes that Apple will have to raise money to solve its patent problems. He believes it is increasingly likely that Apple will either have to start drawing up licensing agreements or take over startups that specialize in this area if medical technology is to continue to be integrated into watch models on a larger scale, the analyst said, according to “Business Insider”. This means that Apple could face high costs again.
Editorial team finanzen.net
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