In a Significant move triggered by a Patent Infringement case, Apple Inc. has announced the cessation of sales for two of its smartwatch models in the United States.
Apple will stop selling the newest versions of the Apple Watch in the US this week
The decision to suspend the sales of ‘Series 9’ and ‘Ultra 2’ models comes in the wake of a ruling by the U.S. International Trade Commission (ITC) in October, which found these devices to be in violation of medical technology company Masimo’s patent rights. This ruling focuses on the technology enabling blood oxygen sensing in these smartwatches.
1. Apple will stop selling two smartwatch models in the U.S., namely the Apple Watch Ultra 2 and Apple Watch Series 9, according to 9To5Mac.
This follows an intellectual property dispute with medical tech company Masimo over the blood oxygen sensor technology in the watches. pic.twitter.com/k8zO7C51Im
— BFM News (@NewsBFM) December 19, 2023
President Joe Biden’s administration, with the U.S. Trade Representative’s office under Ambassador Katherine Tai’s scrutiny, has until December 25th to review this decision. If unchallenged, the prohibition will take effect on December 26th. Meanwhile, Apple has expressed its readiness to comply if the judgment persists, with sales halting online from December 21st and at retail locations by December 24th.
While Apple waits for President Biden’s administration to make a decision about the ITC’s Apple Watch ban, the company is working on a software update that may help avoid stopping sales for now. By @hillitech
— AppleInsider (@appleinsider) December 19, 2023
However, other models, such as ‘Apple Watch SE’ that do not incorporate the disputed blood oxygen sensor, will not be affected by this legal conflict.
Masimo’s CEO, Joe Kiani, indicated openness to negotiations with Apple in October. The company emphasized the importance of respecting ITC’s decision, underscoring the necessity to protect intellectual property rights and maintain public trust in the U.S. patent system.
According to Counterpoint Research, Apple commands about a quarter of the global smartwatch market, a share that tends to spike during holiday sales seasons in the U.S. and Europe. Notably, the affected models, ‘Series 9’ and ‘Ultra 2’, will remain available for purchase outside the U.S., including Asia during the Lunar New Year season.
Apple, while planning to appeal against the ITC’s decision, believes the ruling is flawed and seeks its revocation. This development had a slight negative impact on Apple’s stock, which closed down 0.9% on Monday.
