Apple halts sales of latest smartwatches in US: Here's why
Apple will pause selling Watch Series 9 and Watch Ultra 2 in the US starting Thursday (December 21) on its website and in retail stores after Sunday (December 24). This is due to a patent dispute with medical device manufacturer Masimo over the blood oxygen feature in these smartwatches. In October, the US International Trade Commission (ITC) found Apple in violation of Masimo's patent. President Joe Biden has until December 25 to review this ruling before a ban is enforced.
'Apple strongly disagrees with the order'
The 60-day ruling review period won't conclude until December 25. However, Apple is "preemptively taking steps to comply should the ruling stand." It stated, "Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers." If the order remains, Apple will "continue to take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as soon as possible."
Apple working on making changes to smartwatch algorithms
According to Bloomberg, engineers at Apple are moving to make changes to algorithms in the smartwatches, adjusting how the technology estimates oxygen saturation and provides the data to customers. The report states that Apple has started sending new signs to its retail outlets that promote the Apple Watch without showing photos of the Series 9 and Ultra 2, which come under the potential ban.
Impact on sales of other models
Other Apple Watch models that do not contain the blood oxygen sensor, including the Apple Watch SE will not be impacted. However, an import ban would affect Apple Watch Series 6 and later models, as well as all versions of the Apple Watch Ultra imported after the review period ends. The company has provided evidence showing how a ban would harm healthcare, scientific and medical research, and Apple Watch users who depend on ECG, blood oxygen, and other health-related features.
Deliberate infringement: Masimo's CEO
Masimo CEO Joe Kiani told CNN he views the decision to stop selling the smartwatches as the latest "salvo" in the ongoing patent battle. "This has been a deliberate infringement," Kiani said—labeling the sales halt a pressure tactic on Biden. While Apple hasn't tried to settle the case with Masimo, Kiani stated he's open to it. In October 2022, Apple filed two patent infringement lawsuits against Masimo, alleging the company copied patented Apple Watch features into Masimo's W1 medical smartwatch.
Apple has roughly quarter of global smartwatch market
David McQueen, from ABI Research, believes keeping the smartwatches available for purchase in stores until Sunday should help mitigate the financial impact of the pause, allowing customers more time to buy the devices before Christmas. Apple owns roughly a quarter of the global smartwatch market. Annually, this tends to increase to over a third in Q4 during US and European holiday seasons. Apple sold 49 million smartwatches in 2022 and approximately 26.7 million in the first nine months of 2023.
