Apple Inc plans to stop selling certain versions of Apple Watch in the United States as early as this week, responding to what might be one of the most major patent disputes in recent years. The company confirmed to CNN that beginning this Thursday, December 21, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be sold on Apple.com and instead, will only be available in stores after December 24.
The move arises from a dispute between Apple and medical device manufacturer Masimo, centered around its oxygen-reading function. The lifesaving capabilities exemplified in Apple's Watch have heavily praised the device, making it the highest-selling watch globally. However, the rift with Masimo could besmirch this reputation. In October of last year, Apple was found to have infringed upon Masimo's pulse oximeter patents by the International Trade Commission. This patent reads blood oxygen levels using light-based technology. President Biden has a 60-day window to review the decision before a potential ban.
Apple has proactively decided to adhere to the decision. The company stubbornly disputes the ruling and is exploring all legal and technical maneuvers to ensure the wearable remains available to customers.
The company promises to take all steps to return the Apple Watch Series 9 and Apple Watch Ultra 2 to American customers as quickly as possible in case the ruling comes into force. This import prohibition will affect Series 6 and higher versions of the Apple Watch, impacting all Apple Watch Ultra models imported after the review.
Still, the Apple Watch SE sale will not be hit, Apple confirms. The Series 9 watch was introduced by Apple in September last year, featuring a custom S9 chip, boasting a faster processing speed and gesture control hinging on an enhanced neural engine to process data from sensors and machine learning.
Apple asserts that the ITC's investigation outcome is flawed, to be overturned, and plans to propel this decision to the Federal Court of Appeals. Moreover, it has provided proof of how the ban will negatively impact healthcare, science, and medical research alongside Apple Watch users depending on ECG, blood oxygen, and other health-related features. Masimo CEO, Joe Kiani, thinks the decision is the latest spite in the ongoing patent war. He said, "This is deliberate infringement," Kiani said and called the sales halt a tactic to pressure Biden.
In October 2022, Apple lodged two patent infringement lawsuits against Masimo, alleging that the Masimo M1 Medical Smart Watch imitated patented features of the Apple Watch.
ABI Research Director David McQueen suggested postponing sales in stores to December 24 could help Apple offset the financial impact that the halt in sales brings, allowing consumers a few days to buy the Apple Watch before Christmas. If Apple boosts sales in the final days, it may not severely impact its business, assuming stocks are available. Its business could probably weather the holiday season without significant sales disruption. From the beginning of 2023, Apple sold about 26.7 million smartwatches.
He adds, "It will be interesting to see how long the dispute continues, when Apple will loosen its purse strings, and when the ban will be lifted."