Apple Inc. announced today that it will temporarily pause sales of its Apple Watch Series 9 and Ultra 2 smartwatches in the United States, effective December 21st, 2023. This decision arises from a recent legal ruling and ongoing presidential review regarding potential patent infringement claims brought by Masimo Corporation.
Judgement and Presidential Review:
In January 2023, a US court ruled in favor of Masimo, finding that Apple infringed on patented pulse oximeter technology used in the blood oxygen sensing features of the Series 9 and Ultra 2 models. Subsequently, the US International Trade Commission (ITC) issued an import ban on these models. The order is currently under presidential review, which will conclude on December 25th, 2023.
Preemptive Pause:
In anticipation of the potential upholding of the import ban, Apple has opted to proactively halt sales of the affected models within the United States. This decision applies to both online purchases through Apple’s website and in-store retail sales. However, existing in-store inventory may remain available for purchase until December 24th.
Impact on Apple:
The Apple Watch is a key component of the company’s wearables, home, and accessories business, serving as its second-largest product category behind the iPhone. Apple maintains the size of its wearables unit alone rivals a Fortune 150 company. This sales pause comes during the critical holiday shopping season, potentially impacting potential revenue streams.
Masimo Perspective:
Masimo CEO Joe Kiani previously stated that the January ruling represented “a significant step towards restoring fairness in the market.” The company has not yet issued a formal statement regarding Apple’s sales pause.
Additional Information:
- Sales of the Apple Watch Series 9 and Ultra 2 will cease online at 3:00 PM ET on December 21st and in stores on December 24th.
- The sales pause only applies to Apple’s direct sales and does not affect other retailers.
- Apple Watch SE and other models not featuring blood oxygen monitoring remain unaffected.
- Apple intends to appeal the ITC’s ruling and explore legal and technical options to resume sales of the Series 9 and Ultra 2 models.
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