Shares of Apple Inc. dropped Monday, after The Wall Street Journal reported the technology giant was set to halt Apple Watch sales in a preemptive move to comply with a U.S. import ban regarding the use of blood-oxygen sensors.
The ban, which would include the Apple Watch Series 9 and Apple Watch Ultra 2, comes after the U.S. International Trade Commission found that Apple violated patents in most new models of its smartwatches since 2020, the WSJ report said.
Apple’s stock
AAPL,
fell 0.8% in afternoon trading, to buck the rallies in the technology sector
XLK
and the broader stock market.
SPX
The stock’s decline puts it in danger of snapping a seven-week win streak in which it has soared 17.4%, and included a record close of $198.11 on Dec. 14.
Apple did not immediately respond to a request for comment.
The reported sales halt would come even as Apple said it strongly disagreed with the trade commission’s finding, and that it is pursuing legal options, the report said.
The commission had found in October that Apple violated medical-technology company Masimo Corp.’s
MASI,
patents related to measuring blood-oxygen levels. That led the commission to issue an order to ban the import of certain Apple Watches.
The Biden administration has 60 days to overrule the Trade Commission’s order.
Masimo shares rallied 5.5% in afternoon trading Monday.
While Apple didn’t provide data on Apple Watch sales in its latest earnings report, it did say wearables, home and accessories revenue came in at $9.3 billion during the fiscal fourth-quarter ended Sept. 30.
Apple’s stock, which has eased 1% since closing at a record $198.11 on Dec. 14, has run up 50.9% year to date while the Nasdaq Composite
COMP,
has rallied 42.5% and the Dow Jones Industrial Average
DJIA,
has gained 12.6%.
This post was originally published on Market Watch
