Apple halts US sales of Series 9 and Ultra 2 smartwatches amid patent dispute
File photo of an Apple Watch.
In response to a patent dispute affecting the blood oxygen feature, Apple has announced the temporary suspension of sales for its Series 9 and Ultra 2 smartwatches in the United States, as reported by Reuters.
The move follows an October order from the US International Trade Commission (ITC) that could prohibit Apple from importing these smartwatches due to alleged patent violations against medical technology company Masimo.
The ITC order, currently under review by President Joe Biden until December 25, may take effect on December 26 if not vetoed. Apple has indicated that it will comply with the ruling if it stands. The ban would restrict the import of Apple Watches and is based on the allegation that the devices violate Masimo's patent rights.
Apple has outlined its compliance plan, announcing a pause in sales on its website starting from December 21 and in Apple retail locations after December 24. However, models without the blood oxygen sensor, such as Apple's lower-priced Apple Watch SE, remain unaffected.
While the impact on holiday sales is expected to be minimal, Ryan Reith, program vice president for research firm IDC's mobile device tracking efforts, anticipates the full effect in January and February. Reith notes that Apple has sufficient inventory of Watch 8 and SE to meet demand during this period.
Masimo CEO Joe Kiani expressed openness to negotiating a deal with Apple in October. The company, in a statement, emphasised the importance of respecting the ITC decision to protect intellectual property rights. Apple, holding about a quarter of the global smartwatch market, plans to appeal the decision to the Federal Circuit.
In response to the ban, Apple is reportedly making changes to algorithms in the smartwatches to address the dispute. The technology's oxygen saturation calculation and consumer data presentation are being tweaked by engineers. Apple is exploring legal and technical options and has begun preparing stores for potential changes.
While the ban does not impact sales outside the United States, Apple's wearables, home, and accessory business, including the Apple Watch, generated $8.28 billion in revenue during the third quarter of 2023.
(With inputs from Reuters)
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