How did apple end on the wrong side of the track?
Opinion by arsim@thejournalbiz.com
Apple is set to appeal the ban on smartwatch sales as controversy over patent infringement goes mainstream, Wall Street Journal recently reported.
One of the biggest companies in the world, Apple is facing a fierce legal battle initiated by a health company hardly anyone heard about outside the U.S, Masimo Corp
Tweet on the Apple Watch ban
@Apple has stopped selling the Apple Watch Series 9 and Ultra 2 in the US on its online store, just days before a ban related to a patent dispute takes effect, via Bloomberg#Apple #smartwatch #patent #brand pic.twitter.com/RBx6Sjrjcx
— The_Journalbiz (@the_journalbiz) December 22, 2023
The journalbiz news on patent infringement claims
It’s not some Hollywood movie plot we used to watch in excitement about what’s going to happen next.
Although it resembles the epic story, the one that David, against all the odds prevails in an uneven battle against Goliath the giant.
Similarly, but not quite. Apple finds themselves amid controversy from patent infringement claims on their latest smartwatch. And now the world is not only hearing about Masimo’s ban but closely following how the biggest tech brand gets caught in between two conflicting realities. The one that we knew about innovation superiority, and the other that we least expected, facing legal battles on patent infringement claims.
Despite minor setbacks Apple remains the top stock to watch
Bloomberg chart: Apple
Hard to believe but Apple, despite the technological advantages over others in the tech market and with millions of customers worldwide, ends up as a copycat over an untested feature in the market as pulse oximeters are.
As a consequence, the newest Apple Watch models are no longer available for purchase from the company’s website.
The sales ban was imposed by the US International Trade Commission, which ruled that Apple violated two health-technology patents related to blood oxygen sensing held by Masimo Corp.
But what precisely is this little feature ’blood oximeter’ that Apple went all in, without conducting the compliance first? and
How did Apple’s due diligence miss all the red flags on the patent issue?
A few years ago, we may recall how the pulse oximeter went mainstream during Pandemics.
A tiny tool on the tip of our fingers measures the oxygen levels in the blood, the lower the numbers are the higher the risk of being infected with the virus. Fast forward to today and smartwatches, the ones equipped with pulse oximeters are all over the news. And that’s all thanks to Apple’s blunder in product innovation, or patent issues when they’ve incorporated the oximeter feature that pretty much resembles the one that already is on the market.
Approved by the FDA, Masimo smartwatch features are on the safe side of the buzzing story. As a health tech company, Masimo has been known for producing medical-oriented products ever since 2002.
In addition, their smartwatches were already equipped with oximeter features for years now, but barely anyone knew or heard outside the U.S. about Masimo’s product. Apple’s decision to fight the ban and refuse to reach a deal with Masimo is not only counterproductive, but it may very well end up as the biggest advertisement by a premium brand done to an outsider, not even considered a rival on the market.
- It seems that there’s no such thing as bad marketing after all.
While Apple fights the ban and the news keeps spreading like wildfire, Masimo is reaping the benefits from the endorsement Apple is providing.
No matter how it ends, and make no mistake that it will end soon, there can only be one winner and a marketing lesson to be learned from this product initiation blunder. And that is to avoid at all costs the legal battles over something that is already lost while making sure to conduct a thorough due diligence before we initiate any research & development plan in the first place.
Lastly, as we live in the age of TikTok and Instagram.
The role of social media remains fundamental in how our product is promoted. The intrinsic values of every company lie behind each product that is crafted for global consumers. We may like it or not, but anything, even the tiny bits can catch the public’s attention and almost everything may turn into a viral meme in the blink of an eye.
Thus, the specificity of any designated product must be tested diligently before we even launch the marketing campaign.
The pivotal key, however, remains the product’s legal status, and without the latter component, we may end up dealing with the court deliberations, instead of increasing the company’s revenues out of consumers end of the year buying spree habits.
@thejournalbiz.com
