Apple Issues Internal Memo Telling Employees Not To Guide Customers Where They Can Buy Watches: Report

Apple Inc. AAPL had issued a memo to customer service representatives, instructing them not to guide customers to places where they could buy the watches as a result of ongoing legal proceedings.

What Happened: The memo appeared after Apple decided to stop the sales of Apple Watch Series 9 and Ultra 2 on Thursday. Its retail stores will end sales by Christmas Eve, reported Bloomberg on Tuesday.

Despite the ruling, large retailers such as Walmart Inc. WMT, Best Buy Co. BBY, and Target Corp. TGT can continue selling the watches due to a legal loophole. However, Apple’s employees have been instructed not to guide customers to these retailers for purchases.

The International Trade Commission (ITC) ruled in October that Apple’s flagship watches infringed a patent owned by Masimo Corp. for measuring blood oxygen. Unless an eleventh-hour pardon from U.S. President Joe Biden, Apple will need to halt sales of one of its leading products by Christmas day.

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Why It Matters: This decision came in response to a patent infringement ruling involving medical technology company Masimo, which might seem like a significant setback for Apple at first glance.

Leading equity analysts Samik Chatterjee and Joseph Cardoso from JPMorgan believe the financial impact on Apple may not be as severe as initially feared.

Masimo Corp. CEO Joe Kiani expressed his willingness to settle the ongoing dispute with Apple over patent infringements related to the Apple Watch Ultra 2 and Apple Watch Series 9. In an interview with Bloomberg, Kiani stated that Apple hasn’t reached out yet.

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