Apple Takes Drastic Step: Halts Sales Of Series 9 And Ultra 2 Smartwatches In The US Over Patent Dispute

In October, the U.S. International Trade Commission (ITC) issued an order that could prevent Apple from importing its Series 9 and Ultra 2 smartwatches, citing patent infringements related to medical technology company Masimo’s rights. The specific dispute revolves around the technology enabling the blood oxygen feature in these devices.

Presidential Review

As of now, President Joe Biden is reviewing the ITC decision, with a deadline until December 25. Apple is taking precautionary measures to comply with the ruling should it stand. Ambassador Katherine Tai of the U.S. Trade Representative is actively assessing the case.

Sales Halt and Potential Ban

If the decision is not vetoed, the ban is set to take effect on December 26. Apple plans to pause sales on its website from December 21 and in retail stores after December 24. However, other models unaffected by the dispute, like the Apple Watch SE, will continue to be available.

Market Impact

Analysts anticipate minimal impact on holiday sales, with potential repercussions in January and February, traditionally slower months for Apple. The company currently holds about a quarter of the global smartwatch market share.

Legal Maneuvers and Technical Adjustments

Masimo CEO Joe Kiani expressed openness to negotiations in October. Apple, disagreeing with the ITC’s findings, intends to appeal the decision to the Federal Circuit. Meanwhile, engineers at Apple are reportedly working on adjusting algorithms related to the disputed technology.

Global Availability

While the Series 9 and Ultra 2 may face restrictions in the U.S., they will remain available for purchase outside the country. Apple’s share typically increases to over a third during the U.S. and European holiday sales seasons.

Ongoing Legal Battles

Masimo has accused Apple of various wrongdoings, including hiring its employees and incorporating pulse oximetry technology into the Apple Watch. Legal battles between the two companies extend to multiple jurisdictions, adding complexity to the situation.

Future Strategies

Apple is exploring legal and technical options in case the ban is upheld. The company is reportedly preparing for changes in its stores, emphasizing other watch models not affected by the dispute.

Company Statements

Masimo emphasized the importance of respecting intellectual property rights, while Apple maintains the ITC’s decision was erroneous and plans to submit a workaround to the U.S. customs agency.

Apple is navigating a complex legal landscape, balancing compliance with potential sales impact and future technological developments amid the ongoing patent dispute with Masimo.

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