Apple (NASDAQ:AAPL) stock continues to be in the spotlight. In a recent development, Reuters reported that the iPhone maker is pushing the U.S. Court of Appeals to reverse a ruling from the U.S. International Trade Commission (ITC) that prohibited the import of certain Apple watches amid the ongoing patent dispute with Masimo (NASDAQ:MASI), a medical technology company based in California.
Apple asserts that the ITC’s decision was based on flawed patent judgments. It also adds that Masimo has failed to substantiate investments in competing U.S. products. Conversely, Masimo alleges that Apple recruited its staff and unlawfully utilized its pulse oximetry technology for measuring blood oxygen levels.
Notably, Apple secured a temporary suspension of the ban pending the appeal process. The tech giant maintains that Masimo’s patents lack validity and that its watches do not infringe upon them. Furthermore, U.S. Customs and Border Protection concluded that redesigned iterations of the watches did not breach Masimo’s intellectual property rights. Apple argues that the ban is unwarranted, emphasizing that Masimo’s wearable, subject to the patents, was purely speculative at the time of the complaint.
Apple Eases Music App Policy in Europe
In another development, Apple altered its App Store policies in the European Economic Area. It will allow music streaming apps to inform users about alternative methods for purchasing digital services, Reuters reported. This move follows a €1.84 billion or $1.99 billion fine imposed by the European Union for allegedly impeding competition in the music streaming market.
The European Commission found Apple guilty of unfair trading practices, prompted by a complaint from Spotify (NYSE:SPOT) in 2019. Apple will now permit developers to direct users to their websites for purchases and inform them about pricing. However, Apple maintains its right to charge commissions for its services.
Is Apple a Buy, Hold, or Sell?
Apple stock is down about 12% year-to-date. Besides for legal and regulatory headwinds, Apple stock is under pressure for several factors, including slowing iPhone demand and intensifying competition in China. Moreover, concerns over its Artificial Intelligence (AI) and weakness in the Wearables, Home, and Accessories segment keep analysts cautiously optimistic.
Currently, Apple stock has a Moderate Buy consensus rating based on 16 Buys, 11 Holds, and one Sell recommendation. Analysts’ average price target on AAPL stock is $202.84, which implies 19.61% upside potential from current levels.
