On Tuesday, December 19th, Apple is set to halt sales of its Series 9 and Ultra 2 Apple Watch models in the U.S. due to an international patent dispute. The International Trade Commission (ITC) had restricted the sale of these models, which feature the Blood Oxygen measurement, following a dispute with medical technology company Masimo. Apple initially had until Christmas to continue sales as the White House had a 60-day review period, but it decided to suspend sales early to comply with the ITC order. The Biden administration, aware of the case, is allowing U.S. Trade Representative Katherine Tai to make the decision.
The sales pause is estimated to cost Apple around $300-400 million in holiday-season sales, although this is a small fraction of the expected $120 billion in sales during the October-December period. The Apple Watch SE, lacking the contested Blood Oxygen feature, will remain available. This is not the first patent hurdle for Apple, as a previous ITC ruling found infringement on AliveCor’s wearable EKG technology. The ongoing legal challenges may prompt Apple to consider licensing deals or acquiring startups in the medical technology field. Despite the sales disruption, Apple’s stock remains near its record high. If the ITC’s ban is not overturned, Apple pledges to take all necessary measures to resume sales.
