Apple (AAPL) has successfully convinced a jury that health technology and consumer electronics company Masimo’s (MASI) smartwatches infringed on two of its design patents. However, in a stark contrast to this victory, the tech giant now faces a ban on sales of the iPhone 16 in Indonesia.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Details of the Jury’s Verdict Against Masimo
Following the jury’s decision, the jury concluded that the earlier models of Masimo’s W1 and Freedom watches, along with their chargers, violated Apple’s patent rights in smartwatch designs. However, following the verdict, the jury awarded Apple only $250 in damages, the minimum statutory amount for infringement in the U.S.
Notably, Apple’s attorneys pointed out that the lawsuit’s “ultimate purpose” was not financial gain but rather to secure an injunction against the sales of Masimo’s smartwatches. However, the jury determined that Masimo’s current models do not infringe on Apple’s design patents, which Apple argued were being copied.
Apple Has Been Involved in a Prior Dispute with Masimo
In a broader context, Masimo had previously accused Apple of unfairly hiring its employees and allegedly stealing its pulse oximetry technology after the companies discussed a potential partnership. Furthermore, Masimo convinced the U.S. International Trade Commission last year to halt imports of Apple’s Series 9 and Ultra 2 watches after the commission found that Apple’s blood oxygen level technology infringed on Masimo’s patents.
In response to these developments, Apple appealed the decision and quickly resumed sales after removing the disputed technology. In turn, Apple countersued Masimo for patent infringement in 2022, claiming that Masimo copied features of the Apple Watch for its own smartwatches.
AAPL Will Not Be Allowed to Sell iPhone 16 in Indonesia
While Apple celebrates a legal victory, the company now faces a setback in Indonesia, where it will not be allowed to sell its iPhone 16 due to regulations requiring that a majority of its components be locally made. According to Indonesian rules, certain smartphones sold in the country must contain at least 40% of the parts manufactured locally. As noted by Indonesia’s industry ministry spokesperson Febri Hendri Antoni Arief, AAPL has not met this requirement.
What Is the 12-month Price Target for Apple Stock?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 23 Buys, nine Holds, and two Sells. Over the past year, AAPL has increased by more than 30%, and the average AAPL price target of $246.73 implies an upside potential of 6.6% from current levels.
