JPMorgan sees ‘marginal’ financial impact on Apple from Watch model sales halt

JPMorgan notes that Apple (AAPL) confirmed to news outlets that customers in the U.S. will no longer be able to purchase the Apple Watch Series 9 and Apple Watch Ultra 2 from Apple beginning later this week, though it appears third-party retailers will be able to still sell stocked inventory. The halts are related to the International Trade Commission having upheld in October a prior judge’s ruling that Apple infringed medical technology company Masimo’s (MASI) patents on technology related to measuring blood oxygen levels, the analyst noted. Apple previously has stated that it intends to appeal the ITC’s limited exclusion order prohibiting imports and sales in the U.S. of Apple Watch models with blood oxygen sensing functionality. The firm estimates the ban theoretically impacts about $5B of sales, or 1% of total, on an annualized basis, but adds that the true impact will be “materially lower” and driven by the length of the ban as well as Apple’s ability to steer U.S. consumers to legacy models. JPMorgan maintains an Overweight rating on Apple shares.