- Apple has announced a temporary halt in the sales of its Series 9 and Ultra 2 smartwatches in the U.S. starting this week. This move is in response to an October order from the U.S. International Trade Commission (ITC), which found that Apple Watches violate medical technology company Masimo's patent rights. The ITC decision is currently under review by President Joe Biden until December 25, with potential implications for Apple's ability to import these devices. Apple plans to comply with the ruling, pausing sales on its website from December 21 and in retail locations after December 24.
- The potential ban stems from a dispute over technology enabling the blood oxygen feature in Apple Watches. If the ruling stands, it would go into effect on December 26. Sales of other models unaffected by the dispute, such as the Apple Watch SE, will continue. Analysts believe the impact on holiday sales will be minimal, but the full consequences may be felt in January and February, typically slower months for Apple. Masimo, the patent holder, emphasizes the importance of respecting intellectual property rights, maintaining public trust in the patent system, and supporting U.S. industry.
Why it matters
Apple, holding about a quarter of the global smartwatch market, plans to appeal the ITC's decision, asserting that it was erroneous. Meanwhile, engineers are reportedly working on algorithm adjustments to address concerns raised by the dispute. Apple is exploring legal and technical options and preparing stores for potential changes. The company aims to submit a workaround to the U.S. customs agency and is committed to ensuring Apple Watches remain available for customers. The ITC's ruling is the latest chapter in the legal battles between Apple and Masimo, with implications for the wearable technology market.
