Former Masimo CEO Joe Kiani played a pivotal role in the ban on Apple Watch sales for models containing an oximeter in the U.S., citing patent infringement. However, the landscape has shifted dramatically following a proxy battle, which resulted in Kiani’s ousting as Chief Executive. Michelle Brennan is now the interim CEO. This change in leadership opens a new window for Apple and Masimo to potentially resolve their differences, especially regarding the integration of blood-oxygen sensing technology in smartwatches.
The possibility of burying the hatchet could involve Apple incorporating Masimo’s renowned hospital equipment into the Health app. Kiani had previously entertained the idea of a settlement, but discussions never reached fruition. Now, with the founder no longer influencing decisions, industry expert Mark Gurman suggests in his ‘Power On’ newsletter that this could be a prime opportunity for both companies to make amends. Given how crucial blood-oxygen sensing technology is to Apple Watch users, the tech giant may need to re-evaluate its strategy.
Gurman notes that a settlement should have been reached months ago to restore the feature on Apple Watches. However, he acknowledges that a billion-dollar agreement with Kiani, if it had materialized, might have given Masimo too much leverage, leading to potential financial squeezes in the future. Although Apple typically avoids licensing deals, a partnership would allow both sides to drop ongoing litigation, which would be a positive move for both companies.
“I do believe Apple should have come to an agreement months ago to get the feature back on people’s wrists. I understand that a billion-dollar agreement with Kiani might have set a bad precedent. But if Apple truly put the customer first, it’s something the company should have figured out a way to resolve. Now, with Kiani out of the picture, the situation changes. I don’t believe Apple will want to reach a licensing agreement, but I could imagine a deal — financial or not — that lets the two sides drop all litigation,” said Gurman.
One feasible route for collaboration could see Apple integrating Masimo’s advanced hospital equipment with their Health app. While this is just one suggestion from Gurman, it’s likely that Apple has already begun considering its next steps following Kiani’s removal. Keep an eye out for future developments in this story, as negotiations may soon unfold.
Stay tuned for updates as the situation continues to evolve.
