❓ What Led to Apple’s Decision to Pause Sales of Series 9 and Ultra 2 Smartwatches?
Apple has announced a temporary halt in sales of its Series 9 and Ultra 2 smartwatches in the United States, starting from this week. This decision stems from a patent dispute concerning the technology enabling the blood oxygen feature on these devices. An order issued in October by the U.S. International Trade Commission (ITC) found the two models of Apple Watches to infringe on medical technology company Masimo’s patents, potentially leading to a ban on their import.
📰 What Are the Implications of the ITC Decision?
While the ITC’s ruling is under review by President Joe Biden until December 25th, Apple is preparing to comply with the order if upheld. The ban would come into effect on December 26th, prompting Apple to halt sales of the affected models from its website and retail locations in the United States. However, other models like the Apple Watch SE, lacking the disputed blood oxygen sensor, remain unaffected.
🏷️ How Will This Impact Apple’s Sales?
Despite the disruption, industry analysts suggest that Apple’s U.S. holiday sales of smartwatches are unlikely to be significantly affected, with the full impact expected in January and February. Apple maintains sufficient inventory of unaffected models, mitigating immediate sales concerns. However, the broader implication revolves around the potential limitations on future devices leveraging the disputed technology.
💼 What Legal and Technical Measures Is Apple Considering?
In response to the ban, Apple is exploring legal and technical avenues to address the issue. This includes preparing stores for changes by promoting Apple Watch models not subject to the ban. Additionally, engineers are reportedly modifying algorithms in smartwatches to adjust oxygen saturation determination and data presentation methods. Apple is also working on submitting a workaround to U.S. customs to facilitate the devices’ return to the market.
➡️ What’s Next in the Legal Battle Between Apple and Masimo?
Masimo, the company behind the patents in question, asserts that Apple needs to make hardware changes to comply with the patents. The legal dispute between Apple and Masimo extends beyond the ITC ruling, with allegations of employee poaching and patent infringement. Apple intends to appeal the ITC decision to the Federal Circuit, emphasising its belief in reversing the finding and ensuring the availability of Apple Watches to customers.