Starting this week, Apple announced that it would stop selling its Series 9 and Ultra 2 smartwatches in the US as it resolves a patent lawsuit regarding the technology behind the devices’ blood oxygen feature.
Following an October ruling by the U.S. International Trade Commission (ITC) that might prevent Apple from importing its Apple Watches, the company has now taken this step to address the patent infringement that the devices cause to medical technology startup Masimo.
According to the Biden administration’s Office of the U.S. Trade Representative, Ambassador Katherine Tai “is carefully considering all factors in this case.”
The prohibition would take effect on December 26th, barring a veto.
According to Ryan Reith, who is the program vice president for mobile device tracking operations at research firm IDC, the verdict will have its full impact in January and February, which are often Apple’s slowest sales months in the US, and will not have any effect on U.S. holiday sales of Apple Watches.
“Apple has plenty of inventory of the Watch 8 and SE, so they will have products available during that time,” said Reith. “The bigger implication is around whether or not Apple can use the blood oxygen sensor technology that is in question on future devices, or if they’ll have to reach a settlement or come up with a new solution.”
The chief executive officer of Masimo, Joe Kiani, expressed his willingness to negotiate a deal with Apple in October. A recent statement by Masimo stated that the decision of the ITC “should be respected, protecting intellectual property rights and maintaining public trust in the United States’ patent system and encouraging US industry.”
In the first three months of the year, Apple accounts for approximately 25% of the worldwide smartwatch market, with that percentage typically increasing to over 30% in the fourth quarter during the Christmas shopping seasons in the United States and Europe.
You may still buy the Series 9 or the Ultra 2 in countries outside of the United States, even during the Lunar New Year season in Asia.
Apple announced that it would be appealing the ITC’s ruling to the Federal Circuit, saying it was incorrect and should be overturned.
While President Joe Biden reviews the verdict until December 25, Apple has stated that it is preparing to comply with the ruling.
Apple has announced that sales of the watches would be temporarily suspended beginning on December 21 on the company’s website and continuing through December 24 at Apple retail stores.
Apple Watch SE, which is a less expensive model, and other models without the blood oxygen sensor are not impacted by the issue at hand.
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