Masimo successfully managed to enact an Apple Watch sales ban in the U.S., and though the healthcare technology firm may have found an enemy in Apple, its CEO, Joe Kiani, is still open to settlement talks with the largest smartwatch maker in the world. According to one report, settling with Masimo would be the best course for Apple, as a different route will mean the latter will have to undertake a ton of responsibility of bringing not just software but hardware modifications to its wearable lineup that support a blood oxygen meter.
Apple’s settlement history shows it has had to pay out millions, if not billions, on previous occasions, putting it in a losing position
In the latest TrendForce report, the research firm highlights two ways on how Apple can resume sales of its watch family, with one of them having to do with adjusting the software and hardware aspects of its products, reapply for approval, and then potentially resume sales.
“Given the current situation, there are several possible developments. Firstly, Apple may reapply for approval of a redesigned model by regulatory authorities, allowing them to resume sales after making necessary adjustments.”
Unfortunately, it only appears easy on paper, as changing an Apple Watch’s internals can take away months of progress, not to mention the time it takes to review the changes. Given that the Cupertino giant unveils a new model every 12 months, this decision does not appear practical from any angle, which leaves Apple with just one alternative; settling with Masimo.
Sadly, Apple has had a poor settlement history too, where it has been on the losing end of a battle with companies like Qualcomm and had to pay out around $4.5 billion. On the other hand, Masimo has already won two patent infringement cases on previous occasions, with one of them later securing a licensing deal that brought in $1 billion for the healthcare establishment. Also, if Apple does settle with Masimo, it will mean the California-based titan would have admitted to having incorporated the use of stolen technology, which can harm its goodwill globally.
“Secondly, Apple may opt for a settlement with Masimo. In the past, Apple has resolved disputes over chip technology and intentional slowdown of older devices with Qualcomm and in collective lawsuits with users.
However, settlement amounts were substantial, approximately $4.5 billion with Qualcomm and potentially up to $500 million in the case of collective user lawsuits. Compared to Apple Watch’s annual revenue in 2023, which may not have reached $20 billion, such outcomes may be less favorable for Apple.”
Apple has only obtained a minor window of opportunity, as the U.S. Court of Appeals for the Federal Circuit has lifted the ban until January 10, but that time limit is expiring tomorrow, and we have yet to hear what changes will be introduced to the current-generation Apple Watch models. If a software update does not help matters, then settlement may be the only route left, and as things go, it will probably be an expensive bill.
News Source: TrendForce
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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