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Last updated on February 22nd, 2024 at 11:33 am
Sales of Series 9 and Ultra 2 watches are impacted amid a dispute with Masimo over the technology behind the blood oxygen feature
Apple announced on Monday that it will temporarily halt sales of its Series 9 and Ultra 2 smartwatches in the United States starting this week. This decision is a response to a patent dispute concerning the technology used for the blood oxygen feature in these devices. In October, the US International Trade Commission (ITC) issued an order that could prevent Apple from importing its Apple Watches due to violations of medical technology company Masimo’s patent rights.
The decision is currently under review by Joe Biden until December 25, but Apple stated that it was proactively taking measures to comply if the ruling is upheld. The White House declined to comment.
The company announced that it would halt sales of the watches on its website starting December 21 and in Apple retail stores after December 24. Other models without the blood oxygen sensor are not affected by the dispute.
Apple stated it believed the ITC’s decision was incorrect, should be overturned, and that it planned to appeal to the federal circuit.
Masimo has accused Apple of poaching its employees, stealing its pulse oximetry technology, and integrating it into the popular Apple Watch.
Ryan Reith, program vice president for IDC’s mobile device tracking efforts, stated that holiday sales of Apple Watches in the US would not be impacted and that the full effects of the ruling, if upheld, would be felt in January and February, which are typically slower sales months for Apple in the US.
Reith noted, “Apple has sufficient inventory of Watch 8 and SE, so they will have products available during that time. The larger implication is whether Apple can continue using the blood oxygen sensor technology in question on future devices, or if they’ll need to settle or find a new solution.”
According to Counterpoint Research, Apple holds about a quarter of the global smartwatch market, a share that typically rises to over a third in the fourth quarter during the US and European holiday sales seasons. Both the Series 9 and the Ultra 2 will remain available for purchase outside the United States, including during the lunar new year season in Asia.
A jury trial concerning Masimo’s allegations in California federal court ended in a mistrial in May. Apple has also sued Masimo for patent infringement in a federal court in Delaware. Apple has criticized Masimo’s legal actions as a tactic to pave the way for its competing smartwatch.
Since 2013, no presidential administration has vetoed an ITC ruling. In 2013, the Obama administration overturned an import ban on Apple’s iPhones and iPads resulting from a patent dispute with Samsung.
In February, the Biden administration chose not to veto a separate import ban on Apple Watches due to a patent-infringement complaint from medical technology company AliveCor. However, the ITC has placed the ban on hold for other reasons.
According to a company report, Apple’s wearables, home, and accessory business, which includes the Apple Watch, AirPods earbuds, and other products, generated $8.28 billion in revenue during the third quarter of 2023.
