Apple watch import ban set to bruise tech giant but cause no long-lasting damage
- Apple set to appeal after a patent row in the US sees sales of new watch halted.
- The ban on Series 9 and Ultra 2 watches has come into effect.
- It follows a complaint by Masimo that Apple used its technology, violating its patents.
- Apple’s share price fell slightly in pre-market trade.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’This patent row will inevitably cause some bruising for Apple given that the sales of the latest incarnations of the watch have been held up. It means that die-hard fans who always want to get their hands on the latest kit, will inevitably have a much longer wait, and it will disrupt the sales pipeline. The oxygen monitoring technology, which is at the heart of this case, has sparked a series of patent infringement disputes between Masimo and Apple. It’s estimated that Apple’s watch division, as a whole, will be worth around $17 billion this year. So, it’s still small fry but has potential to become a much bigger fish in Apple’s pool of products.
The US International Trade Commission doesn’t take accusations of patent infringement lightly which is why it invoked the ban in the first place, and the White House’s decision not to get involved, will be a blow for the tech giant. However, it is a win for smaller entrepreneurial tech firms, who need protection to spur on innovation. The health tech sector is expected to be an engine for growth in coming years, and big tech firms are super-keen to stay at the cutting edge of the market. This is particularly the case for Apple.
Although it can rely heavily on the power of its brand, it can’t be complacent and it will keep having to develop desirable hardware to sell its packages of services, everything from health and fitness to music to TV apps. So, Apple will want to emerge from this scrap with its finger on the pulse of the latest health trends. It’ll come at a cost, but with its deep roots of funding, Apple is a tree which can weather this particular patent storm.’’
