Apple Halts Sales of Apple Watch Series 9 and Ultra 2 in Light of ITC Decision
In a significant turn of events, Apple has made the bold decision to stop selling its flagship models, the Apple Watch Series 9 and Apple Watch Ultra 2, within the United States. This action follows a recent ruling by the International Trade Commission (ITC) in the midst of a patent dispute with medical technology firm Masimo.
Infringement on Masimo's Intellectual Property
Last October, the ITC declared that Apple's blood oxygen sensing technology used in the Apple Watch infringed upon Masimo's patents. In response to this verdict, Apple has opted to cease sales of the affected models in preparation to comply with the ITC's directive. The sales suspension is slated to come into effect post 3 p.m. ET on Thursday, December 21, with in-store inventory disappearing after December 24.
Masimo's Stance
Masimo, the focal point of this legal wrangle, perceives the ITC's ban as confirmation that even industry giants like Apple are subject to legal regulations. The company continues to be entangled in legal disputes, including a hung jury in a district court case.
Presidential Review Phase and Apple's Position
The matter has now entered a 60-day Presidential Review Phase, concluding on December 25. During this duration, President Biden has the prerogative to veto the ITC's ruling. Apple has voiced its dissent with the decision and has articulated ongoing efforts to explore legal and technical pathways to ensure the availability of the Apple Watch Series 9 and Ultra 2 for consumers.
Market Implications and Future Strategies
The ITC's ruling solely impacts the sale of the Apple Watch Series 9 and Ultra 2, as these variants integrate blood oxygen monitoring functions. The more basic Apple Watch SE, devoid of this feature, continues to remain unaffected and will be procurable. While Apple's sales are curtailed, third-party sellers such as Amazon and Best Buy might still offer the barred models.
Apple intends to lodge an appeal with the U.S. Court of Appeals for the Federal Circuit on December 26, aiming to contest the ITC's judgment. Notwithstanding, it should be noted that appealing the ruling will not defer the immediate repercussions of the ban. Apple's subsequent moves, encompassing potential settlements, licensing accords with Masimo, or design adjustments, are shrouded in uncertainty. The company assures its patrons that it is actively laboring to resume sales promptly.
Anticipation Surrounding the Future of Apple's Wearable Lineup
With the countdown commencing on the Presidential Review Phase, the tech community anxiously awaits the resolution regarding Apple's renowned wearable lineup. The ruling and its plausible repercussions hold the potential to significantly influence the broader wearables market.
