In a temporary reprieve for Apple, a US appeals court has paused an import ban on its flagship smartwatches, allowing sales to resume just in time for the new year. The ban stemmed from a patent dispute with Masimo over pulse oximetry technology used in Apple Watches.

• Ban Lifted: Apple Watch Series 9 and Ultra 2 are back on sale in the US, with blood oxygen features available.
• Masimo Shares Drop: Masimo's stock price declined following the court decision.
• Apple Countersues: Apple claims Masimo's lawsuit is an attempt to clear the path for its own smartwatch.

Patent Dispute: The ITC ruled in November that Apple infringed Masimo's patents, prompting the import ban. Masimo accused Apple of stealing its technology and incorporating it into Apple Watches. Apple countersued, calling Masimo's claims a "manoeuvre" to gain an edge in the smartwatch market.

Financial Impact: Analysts believe any financial impact on Apple from the lawsuit will be minimal compared to the negative publicity. Masimo's shares dropped after the court decision, suggesting investors are concerned about the company's future prospects.

Legal Battles: The appeals court's decision is temporary, and a final ruling could take months. Apple is exploring various legal and technical options, including developing its own blood-monitoring software and seeking redesigned versions of its watches that don't infringe Masimo's patents.

Market Impact: The ban temporarily disrupted Apple Watch sales in the US, but the devices remained available at some retailers. Analysts say the long-term impact on Apple's wearables business is unclear, but the negative publicity could hurt brand perception.

Future Outlook: The outcome of the patent dispute will have significant implications for both Apple and Masimo. Apple could face costly redesign or licensing fees if it loses the case, while Masimo could gain a valuable advantage in the smartwatch market.