In a strategic move to navigate a potentially monumental patent dispute, Apple has announced plans to cease the sales of its Apple Watch Series 9 and Apple Watch Ultra 2 in the United States.
This decision, aimed at avoiding legal ramifications, comes as the tech giant faces an ongoing clash with medical device manufacturer Masimo regarding the blood oxygen feature on its smartwatches.
Confirming the decision, Apple disclosed to CNN that the affected models would no longer be available on Apple.com starting Thursday and would be withdrawn from retail locations nationwide.
The impetus behind this move lies in the recent ruling by the US International Trade Commission (ITC), which found Apple in violation of Masimo’s pulse oximeter patent—a technology utilizing light-based methods to measure blood-oxygen levels.
Apple, renowned for marketing its smartwatches as life-saving devices, now finds itself entangled in a dispute that could undermine this reputation.
The blood oxygen feature, a key selling point for Apple Watch, is at the center of the legal battle that could lead to a ban on Apple’s products.
The ITC ruling, issued in October, has given President Biden a 60-day window to review before any potential ban takes effect.
Apple, not willing to wait, has proactively decided to halt sales, stating, “While the review period will not end very soon, Apple is preemptively taking steps to comply should the ruling stand.”
Expressing disagreement with the order, Apple emphasized its commitment to pursuing legal and technical avenues to ensure the continued availability of the Apple Watch to customers.
The company affirmed that if the ban is upheld, it will take all necessary measures to expedite the return of Series 9 and Ultra 2 models to US customers.
Notably, other Apple Watch models will remain on the market, with Apple clarifying that the import ban would impact Apple Watch Series 6 and later, as well as all models of Apple Watch Ultra imported after the upcoming review period. However, sales of Apple Watch SE will remain unaffected.
The Series 9, launched in September, introduced features such as a custom S9 chip for faster processing and hand gesture control.
Apple asserted its belief that the ITC’s findings are inaccurate and intends to appeal the decision to the Federal Circuit.
Masimo’s CEO, Joe Kiani, views Apple’s decision to stop sales as a calculated move in their long-standing patent dispute.
Characterizing Apple’s actions as a “deliberate infringement,” Kiani suggested that the sales halt serves as a pressure tactic on President Biden.
Despite the ongoing legal skirmish, Kiani expressed openness to a settlement, a path Apple has yet to explore.
The companies have a history of legal confrontations, with Apple filing patent infringement lawsuits against Masimo in October 2022, alleging the replication of Apple Watch features in Masimo’s W1 medical smartwatch.
As the dispute unfolds, industry experts speculate on the financial impact on Apple’s business.
David McQueen, a director at ABI Research, noted that leaving the watches available for purchase should mitigate the immediate financial repercussions, allowing Apple to capitalize on holiday sales.
However, the duration of the dispute and its ultimate resolution remain uncertain, leaving the tech giant and its customers in suspense during this critical period for sales.
Apple’s 2023 smartwatch sales, after a robust 2022, now hang in the balance as the company navigates through the complexities of a high-stakes patent dispute.