The troubles of tech giant Apple (NASDAQ:AAPL) are mounting as legal punches keep coming. In a recent development, the company failed to postpone the enforcement of a U.S. import ban on its smartwatches manufactured outside the U.S., a Wall Street Journal reported.
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The U.S. Court of Appeals for the Federal Circuit has lifted the interim stay on the implementation of the U.S. International Trade Commission’s (ITC) October ruling. The ruling determined that Apple violated the patents of medical technology company Masimo (NASDAQ:MASI). Apple had previously sought to postpone the import ban while the appeals process was underway.
To comply with the ban, Apple has decided to exclude its blood oxygen measurement technology from specific watch models, including the Series 9 and Ultra 2.
The Case Background
Masimo filed a complaint with the ITC in June 2021, alleging that Apple had infringed upon its patents related to blood-oxygen level measurement. The complaint outlined that Apple explored incorporating Masimo’s technology into the Apple Watch in 2013 but ultimately failed to do so. Instead, Apple began hiring Masimo personnel, including its Chief Medical Officer.
Later, in 2020, Apple launched the Series 6 watch, which was produced in Asia and reportedly equipped with the ability to measure oxygen saturation.
The impact of the latest development on Apple’s wearables segment remains to be seen. Meanwhile, let’s examine analysts’ recommendations for AAPL stock.
Is Apple a Buy, Sell, or Hold?
The softness in iPhone demand and the pressure on hardware sales keep analysts cautiously optimistic about AAPL stock. Among the 33 analysts covering AAPL, 23 have a Buy rating. Nine recommend Hold, and one has a Sell. Overall, Apple stock has a Moderate Buy consensus rating. Analysts’ average AAPL stock price target of $203.35 implies an upside potential of 11.31%.
