Apple has announced a temporary pause in the sales of two of its latest Apple Watch models in the United States. This action is due to an ongoing intellectual property dispute surrounding the Blood Oxygen feature included in these watches. The decision follows two orders from the U.S. International Trade Commission (ITC) that impose restrictions on Apple’s ability to sell products with this feature, following a disagreement with Masimo, a medical technology company. While existing customers will not be affected, online sales of the Apple Watch Series 9 and Apple Watch Ultra 2 will be paused at 3 p.m. on Thursday, with in-store sales ceasing after Sunday.
The White House has a 60-day period for reviewing the ITC’s restrictions, expiring on December 25. However, Apple has chosen to begin the sales pause earlier in order to ensure compliance with the order should it remain in effect. The stock market has responded somewhat negatively, with Apple’s stock falling more than 1% as of midday Monday. If the ruling stands, one of the ITC’s orders will prohibit Apple and its affiliates from importing watches that utilize the Blood Oxygen feature, as well as the materials required for the feature’s implementation.
Apple has expressed its intent to take all necessary measures to resume sales of the affected watches as soon as possible should the ITC’s order be lifted. Despite the pause in sales, Apple has noted that customers who have already purchased either of the watches in question will not experience any issues with their products. Additionally, there are no changes to the availability of these watch models outside of the United States.
Apple’s wearables, home, and accessories unit represents a significant portion of the company’s revenue, ranking as the third-largest generator with $9.3 billion in the last quarter. As a result, the temporary halt in sales could have financial ramifications for the company.
The intellectual property dispute between Apple and Masimo has prompted a pause in the sales of certain Apple Watch models in the U.S. While the exact impact on Apple’s revenue remains uncertain, the company has taken swift action to comply with the ITC’s orders. Existing customers will not be affected, and Apple is committed to resolving the dispute and resuming sales as soon as possible. The final outcome of this ongoing dispute will likely have far-reaching implications for both Apple and Masimo.
Leave a Reply