Apple vs Masimo, the aftermath of the lawsuit

[GXAlan]

With apologies, I represent a bunch of folks in your hypothetical and so it’s probably not appropriate / ethical for me to comment even though this forum is anonymous. If you want to pose a much more generalized hypothetical without companies I would chime in. I don’t mean to be pain , but it’s how I feed my family so I don’t play games with the rules.

Ah. In that case, no worries. Thanks for your clarity on rules surrounding import bans as it is.

 

[Ron Texas]

The last I heard on this was Tim Cook said Apple was not interested in settling with Masimo and was focused on the appeal.

 

[Ron Texas]

https://seekingalpha.com/article/4671415-masimo-apple-litigation-recent-market-victory-may-not-last

The link explains there is a blood O2 sensor technology superior to Masimo's which does not infringe on the Masimo patents. The technology from ActLight has already been licensed to a company which supplies semiconductors to Apple and will be ready for volume production by April. The article is not an Apple rumor per se, but the product of independent securities research regarding Masimo. It might show up in the next iteration of the Apple Watch without regard to how the appeal of the ruling in favor of Masimo turns out. This is also a major threat to Masimo's medical device business.

 

[GXAlan]

https://seekingalpha.com/article/4671415-masimo-apple-litigation-recent-market-victory-may-not-last

The link explains there is a blood O2 sensor technology superior to Masimo's which does not infringe on the Masimo patents. The technology from ActLight has already been licensed to a company which supplies semiconductors to Apple and will be ready for volume production by April. The article is not an Apple rumor per se, but the product of independent securities research regarding Masimo. It might show up in the next iteration of the Apple Watch without regard to how the appeal of the ruling in favor of Masimo turns out. This is also a major threat to Masimo's medical device business.

It’s an interesting article although it’s not truly independent

“As the fund manager of the Quan Technology Fund that is an investor in ActLight…”

So it’s an investor touting his own portfolio company. We have seen time after time where something like Apple’s sapphire crystal production is hyped and goes nowhere.

But super interesting technology for sure!

 

[SoonToBeRetired]

One of the reasons I bought a Garmin Fenix 7. Apple has enough of my money.

 

[Peterinvan]

FYI

Masimo (MASI) shares soared 3.3% in the last trading session to close at $139.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.1% gain over the past four weeks.

The company's plan to spin-off its consumer business is likely to be the key factor for the surge in share prices. Investors cheered the news as the spin-off may improve Masimo's business performance going forward.

The consumer business includes the former Sound United, its Stork baby monitor and Freedom smartwatch and bands. Masimo will retain its professional health care and telehealth products, which include noninvasive monitoring products for patients in hospitals.

Last year, Masimo's non-health care products brought in $772.6 million in sales. That narrowly beat expectations for $770.7 million, FactSet shows.

Needham's Matson notes that Sound United had annual sales of about $900 million at the time Masimo acquired it. Then, it had a 14% margin on EBITDA — or earnings before interest, taxes, depreciation and amortization — but that's likely contracted alongside sales.