Where are you getting this information? The consumer business is ultimately a threat to Masimo. Did they have any intention of commercializing these patents? Why did so many employees leave?
The issue here is not that Apple hired them or that Apple didn’t go through with the deal. The issue is that Apple didn’t innovate but instead infringed on someone else’s IP. If you want to see an example of what Apple should have done, go check out the Garmin patents around pulseox.
Edit: People like to dunk on Garmin for being slow to market, while ignoring the degree to which Garmin doesn’t just rip off patented ideas and instead actually innovates.
[^1] https://www.masimopersonalhealth.com/products/masimo-w1
That’s for Apple to ponder and decide how to proceed. They seem to believe there’s no alternative yet.