The Apple Watch sales ban was recently lifted by the U.S. Court of Appeals for the Federal Circuit, but that does not mean that the company has ample time to get the ball rolling. In fact, Apple only has until January 10 to get its patent infringement problems with Masimo sorted. In the meantime, one prediction explains how the technology giant aims to make the most of this borrowed time.
During the sales ban lift, Apple Watch models may get re-stocked at retail outlets to keep the momentum running
Details of the Apple Watch sales ban state that the Apple Watch Series 9, the Apple Watch Ultra 2, or any other model featuring a blood oxygen meter cannot be sold through the company’s U.S. online store or physical channels. However, the aforementioned models can be sold through Apple’s retail partners such as Walmart, Best Buy and others, and that is where Bloomberg’s Mark Gurman believes that Apple will capitalize on.
With the limited number of days left, Gurman mentions on X that an influx of the latest Apple Watch shipments will likely be stocked at places like Best Buy, assuming that the software fix does not circumvent the sales ban. Even with the ban in place, the International Trade Commission has not barred sales from these retail locations, so that will be Apple’s lifeline during this period.
What Apple will probably do over the next two weeks: increase the amount of watch channel inventory stored in the US for distribution to Best Buy, Target etc. in case its software fix isn’t approved. That would be to mitigate risk of inventory running out due to import ban.
— Mark Gurman (@markgurman) December 27, 2023
It will also be a win-win situation for retail channels operated by Best Buy, Walmart, and others since customers looking to purchase an Apple Watch Series 9 or Apple Watch Ultra 2 may also be enticed to pick something else up that is being offered at a discount, benefiting Apple’s retail partners. Masimo, the company that alleges that Apple stole its technology to be used in its products, is open to settlement talks with the Cupertino giant, but the conditions have not been mentioned as yet.
Since Apple has found itself between a rock and a hard place, it gives Masimo additional leverage, and it might attempt to make the most of this opportunity by forcing the iPhone maker to compensate it heavily. Regardless, Gurman’s prediction doesn’t need to come through, but looking at Apple’s limiting breathing room, we will agree that it is the best course of action.
News Source: Mark Gurman
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