Apple’s torrid week continues. Just days after Beijing announced a widespread ban on the use of iPhones by employees of government agencies and state-owned companies, the tech giant is engulfed in a patent battle back home.
According to a report by 9to5Mac, Apple said on Monday that it will be pausing the sales of Apple Watch Series 9 and Apple Watch Ultra 2 in the US, starting December 21 on the Apple website and retail stores on Christmas Eve.
Apple Pause Sales of Latest Apple Watches Following Allegations of Patent Infringement
The decision to remove one of Apple’s most iconic and popular products off the store shelf comes as a result of an ongoing patent dispute with medical tech company Masimo, which alleged that Apple infringed on its patent for a blood oxygen sensor that can read users’ pulse.
However, Apple has repeatedly denied the allegation.
Cupertino proudly markets its smartwatches as a life-saving device, a tactic that has helped propel the product into the stratosphere. The Apple Watch comes with a series of health features, mainly cardio-related, such as:
- Heart Rate and Irregular Rhythm Notifications Optical heart sensor
- AFib History Optical heart sensor
- ECG App Electrical heart sensor
- Low Cardio Fitness Notifications Optical heart sensor and GPS
- Blood Oxygen Level Optical heart sensor
- Fall Detection Accelerometer and gyroscope
But the dispute with Masimo may undermine the reputation of the world’s most sought-after smartwatches.
Back in October, the US International Trade Commission (ITC) found that Apple did violate Masimo’s patent for a pulse oximeter, which uses light-based technology to read blood-oxygen levels.
The technology presumably developed by the health tech company has been included in all Apple Watches since 2020 (Series 6 and beyond). Masimo filed a lawsuit against Apple in the Central District of California on the matter that same year and a case to the ITC in 2021.
In its court filing, the California-based medical technology company that sells patient monitoring devices to hospitals stated that it held meetings with Apple in 2013 about using its tools in Apple products, but the talks broke down.
Masimo claims that Apple poached two of its executives and key engineers in an attempt to illegally duplicate its technology. Apple has denied violating any of Masimo’s patents, arguing that it consulted with several medical technology companies before developing its version of a blood-oxygen monitoring tool.
Tech News: ASUS To Unveil ROG Phone 8 At CES 2024: Here Is What We Know About The Gaming Smartphones
Apple Watch Series 9 and Ultra 2 will be Available Until December 24, Apple Watch SE Not Affected
The Commission issued an import ban on all Apple Watches that include the blood-oxygen feature that was set to take effect on December 26, but Apple decided to act on the deadline early.
President Joe Biden, who oversees the Commission that advises the White House and Congress on matters including intellectual property disputes, has until Christmas day to review the ITC ruling before a ban goes into effect.
In a press statement, Apple said it is “preemptively” taking steps to comply with the ruling, “should it stand”. The company added that it “strongly disagrees” with the order and is pursuing “a range of legal and technical options” to ensure that the Apple Watch continues to be available to customers.
Apple will only be able to continue selling the Apple Watch Series 9 and the Apple Watch Ultra 2 – both released in September – in the US if President Biden vetoes the ruling.
Meanwhile, those who already own the smartwatches will not be affected by the ruling and can continue using the device. The Blood Oxygen Level Optical heart sensor, which is at the heart of the dispute, will also continue to work, according to Apple.
The Commission’s import ban would impact all Apple Watches from Series 6 onwards, and both models of the Apple Watch Ultra imported after the end of the upcoming review period. However, Apple will continue to sell its budget smartwatch, the Apple Watch SE, in the US as it does not use the technology.
How will the Ruling Impact Apple Watch Sales?
Speaking to CNN Business, David McQueen, director of global technology intelligence firm ABI Research, said that Apple’s decision to make the smartwatches available until December 24 should help soften the financial impact of the import ban. This would also give shoppers a grace period to get their hands on the devices before Christmas.
Apple fully dominates the smartwatch sector, accounting for 24% of its market share. McQueen says the possibility of a sales ban may not affect the company’s business “too much” if it can boost sales in the final few days. He expects Apple to “ride out” the holiday season “without too much of an impact on sales”.
Apple sold 49 million units of its smartwatches last year and about 26.7 million units in the first three quarters of 2023.
Reports of the ban sent Apple (AAPL) shares almost 2% lower on Monday. At the time of writing, Apple is trading at $195.89 – down 0.85% in the last 24 hours.
