Apple has announced the temporary suspension of sales for its Series 9 and Ultra 2 smartwatches in the United States. The decision comes after an order from the U.S. International Trade Commission (ITC) in October, which raised the possibility of barring Apple from importing its smartwatches, citing violations of medical technology company Masimo’s patent rights.
The ITC’s ruling is currently under review by President Joe Biden until December 25, and while Apple awaits a final decision, the company is proactively taking steps to comply should the ruling stand. The White House has refrained from making any comments on the matter.
Apple specified that sales of the affected watches on its website will be paused starting from December 21, and in Apple retail locations, the pause will be effective after December 24. It’s important to note that other Apple Watch models not incorporating the disputed blood oxygen sensor remain unaffected by the dispute.
Ryan Reith, Program Vice President for research firm IDC’s mobile device tracking efforts, suggests that the impact on U.S. holiday sales of Apple Watches may not be significant, with the full repercussions, if the ruling is upheld, likely to be felt in January and February – typically slower sales months for Apple in the U.S.
Apple, having about a quarter of the global smartwatch market share, according to Counterpoint Research, intends to appeal the ITC’s decision to the Federal Circuit, asserting that the finding was erroneous and should be reversed.
Masimo has accused Apple of hiring away its employees, stealing its pulse oximetry technology, and incorporating it into the popular Apple Watch. A jury trial on Masimo’s allegations in California federal court ended with a mistrial in May.
Apple, in a counter-move, has separately sued Masimo for patent infringement in a federal court in Delaware, characterizing Masimo’s legal actions as a strategy to pave the way for its own competing smartwatch.
The dispute raises questions about the future use of the blood oxygen sensor technology and whether Apple will need to find a new solution or reach a settlement. Apple has reassured customers that other models, including the Watch 8 and SE, will remain available during this period, as the company has sufficient inventory.
While the Series 9 and Ultra 2 will be unavailable for purchase in the United States, Apple has confirmed that these models will still be available outside the U.S., including during the Lunar New Year season in Asia.
Apple’s wearables, home, and accessory business, which includes the Apple Watch, AirPods earbuds, and other products, generated $8.28 billion in revenue during the third quarter of 2023, according to a company report. The dispute underscores the complexities tech giants face in navigating patent issues and maintaining innovation while ensuring legal compliance.
