Apple Watch
Apple has stopped selling two of its latest Apple Watch models, the Apple Watch Series 9 and Apple Watch Ultra 2, in the United States due to an ongoing patent dispute with medical device maker Masimo.
The US International Trade Commission (ITC) ruled that the SpO2 sensor in Apple’s smartwatches violates Masimo’s patents, leading to the import ban and the halt in sales.
The decision to remove the watches from sale follows Apple’s unsuccessful attempts to overturn the ITC ruling and the impending import ban.
The ban only applies to Apple’s own sales channels, and other retailers are not affected.
The Apple Watch SE, which does not include the disputed sensor, remains available for purchase.
The halt in sales is a significant development in the ongoing dispute between Apple and Masimo, and the companies have not reached a settlement despite the legal battles.
The decision to halt sales is a result of the ITC’s ruling and the import ban, and Apple is exploring options to address the issue and resume sales of the affected models.
The decision has implications for Apple’s holiday-season sales and the ongoing legal and technical efforts to overturn the ban and resolve the patent dispute.
The dispute between Apple and Masimo began in 2021 when Masimo filed a patent infringement claim against Apple, alleging that the company had violated its patents related to the devices’ blood oxygen monitoring technology.
The ITC ruled in favor of Masimo in October 2023, leading to the import ban and the halt in sales of the affected models.
Apple has stated its intention to appeal the decision and is working on legal and technical solutions to resume sales of the affected models.
On December 18, Apple opted to preemptively begin taking the Series 9 and Ultra 2 versions of the Apple Watch out of stock in anticipation of the ruling kicking in.
“Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers,” the company said in a statement at the time.
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The halt in sales of the Apple Watch Series 9 and Apple Watch Ultra 2 is expected to impact Apple’s holiday-season sales, with an estimated reduction of $300 million in the final week of the year.
However, the impact on Apple’s overall business may be limited, as the affected models represent a small portion of the company’s smartwatch sales.
The Apple Watch SE, which does not include the disputed technology, remains unaffected and continues to be sold.
Apple is exploring legal and technical solutions to address the patent dispute and resume sales of the affected models.
The company has stated its intention to appeal the ITC ruling and is working on technical solutions to remove the disputed technology from the affected models.
The company is also exploring settlement options with Masimo, although the companies have not reached an agreement despite the ongoing legal battles.
The halt in sales of the Apple Watch Series 9 and Apple Watch Ultra 2 in the United States is a significant development in the ongoing patent dispute between Apple and Masimo.
Apple may be looking to US President Biden to overturn the ITR ruling that prevents it from selling the Apple watch models in the US.
Biden’s action, if it comes by Christmas end on 25 December, will allow Apple to sell the contentious models of the Apple watch.
Although an intervention from Biden appears unlikely, there is some precedent for it. In 2013, President Barack Obama vetoed an ITC ruling to ban older iPhones and iPads after it determined Apple was in violation of one of Samsung’s patents.
Without intervention from Biden, the 60-day review period on the ITC’s ruling ends Monday i.e. today.
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