Strategy in TECH...
More patent decisions are being handed down as several long-running patent lawsuits between Masimo Corporation (Nasdaq: MASI) and Apple Incorporated (Nasdaq: AAPL) wrap up. Last week, a jury in the matter of Apple Inc. (Plaintiff) v. Masimo Corporation and Sound United LLC (Defendants) rendered a verdict on a case where Apple accused Masimo of infringing on six of its Apple Watch patents.
Technically, Apple got a win…but realistically, it was a huge victory for Masimo.
In the matter of Masimo Corp. v. Apple, Inc….AND…Apple, Inc. v. Masimo Corp. we have a full-blown, overt litigation war raging between two determined combatants. It is a complex battle that has opened multiple fronts with multiple separate actions initiated by each of the parties in District Courts, the U.S. International Trade Commission, the Patent Trial and Appeal Board, the U.S. Customs and Border Protection, and the U.S. Court of Appeals for the Federal District. Almost every one of the myriad decisions by all of these entities is appealed to final disposition.
However, Friday, January 12, 2024, turns out to be an especially important day.
Apple Inc. (NASDAQ: AAPL) announced that this week it was preemptively removing certain models of its Apple Watch line from its online store on Thursday, and from its physical retail stores by December 24th. The products affected by this action are the Series 9 and Ultra 2 Watch models which include pulse oximetry technology that the U.S. International Trade Commission (ITC) determined infringed on patents held by Masimo Corp. (NASDAQ: MASI).
What a year it’s been for Masimo Corporation (NASDAQ: MASI), the manufacturer of medical products sold largely to hospitals and other healthcare systems who is also the owner of Sound United, a leading manufacturer of audio products. Simply saying they’ve been through highs and lows would understate the high drama in which the company has been immersed this past year – not the least of which is embodied by its deathmatch with Apple, Inc., the largest company in the world. Apple is also regularly ranked as the most profitable company in the world – a well-resourced adversary to engage thoughtfully…and carefully.
Some impressive early Masimo wins in this battle with Apple, however, seemed to suggest that the tech behemoth was losing its balance and the altercation might be winnable by its much smaller rival. But then…
Masimo (NASDAQ: MASI), a medical products manufacturer who also owns audio products maker Sound United, said this week that a U.S. International Trade Commission (USITC) Administrative Law Judge in Washington D.C. has ruled that Apple, Inc. (NASDAQ: AAPL) has violated Section 337 of the Tariff Act of 1930 by importing and selling models of their Apple Watch that incorporate light-based pulse oximetry technology that infringes on two of Masimo’s patents. Apple first introduced its pulse oximeter sensor in their Apple Watch Series 6 in 2020 and continues to incorporate it into models up to the current series.
Bloomberg News reported late on Monday that Apple is dropping Sonos [NASDAQ: SONO] and other non-Apple branded products from their stores. The news of Sonos losing such a major customer caused their stock to derail in after hours trading, down almost 7% in value at one point. On Tuesday, Sonos stock price closed down 3.2% as Wall Street digested the news.
Apple, Inc. announced today the eagerly awaited iPhone 7, the next iteration of their biggest selling product. Already, the press leading up to the announcement – along with the blogs of several prominent Apple watchers – were suggesting this might be the year to skip. For those who were anticipating an incremental upgrade, well, ironically, you weren’t disappointed.
Still, Apple CEO Tim Cook declared to the crowd assembled at the Bill Graham Civic Auditorium that it is the best iPhone they have ever made. He even sounded moderately enthusiastic saying so.
In a recently released survey by advertising technology company Fluent, more than half of U.S. adults say that the Apple Watch is a failed product…a flop. The study, which surveyed 2,578 adults here in the U.S., clearly suggests that Americans agree with many in the tech industry who have given largely negative reviews of the product. Ironically, at one time, the Watch was thought to be the next big thing from Apple. It may still be…
It is not unusual for a hot new product to launch with huge demand, only to see unit sales taper down to more sustainable levels after the initial launch demand is fulfilled. Surely, Apple, Inc. was expecting just this type of behavior after the launch of their long-awaited Apple Watch wearable. However, new data from Slice Intelligence shows that sales of the Apple Watch have plummeted by 90% – an amount well beyond Apple’s typical experience.
Savant, a leading home control & automation company, announced today that it is making an app available for the Apple smart watch – called, logically enough, the Savant App on Apple Watch. Since Savant is one of the only home automation companies to base their control systems on the Apple operating system, it only makes sense that they would be one of the first in the tech business to offer an Apple Watch app.
