US ban Apple Watch Ultra 2 and Series 9

US ban Apple Watch Ultra 2 and Series 9

Today, Apple (NASDAQ:AAPL) filed an appeal to the International Trade Commission (ITC) on the US ban on Apple Watch Ultra 2 and Series 9. As of 24th December 2023, Apple will also stop replacing out-of-warranty Apple watches which feature blood oxygen monitors.

If you are not aware what has happened, here is the story. Masimo (NASDAQ:MASI), a medical device company filed a lawsuit against Apple, alleging Apple for infringing on its patent for a blood oxygen sensor which was a feature available in Apple Series 6 and later models.

Apple’s share price has since fallen slightly from its high of US$199.62 to US$193.05.

Apple Share Price 27-Dec-2023

Financial Impact on US ban Apple Watch Ultra 2 and Series 9

Based on Apple fourth quarter financial results, Wearables, Home and Accessories generates a 12 month revenue of $39,845 million for Apple. This makes up an estimate of 10.40% of the Total Net Sales.

As you can see from Apple’s financial statement below, majority of Apple sale revenue comes from its iPhone. This may also explain why the ban on Apple Watch Ultra 2 and Series 9 did not cause Apple’s share price to plunge.

Apple fourth quarter Net Sales 2023

As you can see from my stock portfolio, I am currently an investor of Apple. I hope the share price plunges as I see that as an opportunity for me to accumulate more of Apple.

US Portfolio_202309_September

As of now, it is not clear what is next for Apple in terms of resuming the sales of Apple Watch Ultra 2 and Series 9 watches. As an existing shareholder, I shall await for opportunity to accumulate more of Apple if further negative news cause the share price to decline further.

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