Apple plans to stop selling some versions of the Apple Watch in the US as early as this week, in a bid to get ahead of what could be one of the most significant patent disputes in years.
The decision to pull one of its most popular products follows an ongoing dispute with medical device maker Masimo over its blood oxygen function. Apple has routinely marketed its smartwatch as a life-saving device, which has helped propel the Apple Watch into the stratosphere, making it the most popular watch sold worldwide. But its skirmish with Masimo threatens to undermine that.
In October, the US International Trade Commission ruled that Apple had infringed Masimo’s patent on its pulse oximeter, which uses light-based technology to measure blood oxygen levels. President Biden has 60 days to review the ruling before a ban could take effect.
“While the review period does not end until December 25, Apple is proactively taking steps to comply with the ruling should it stand,” the company said in a statement.
It added: “Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure Apple Watch is available to customers.”
The company said that if the order stands, it will “continue to take every step to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as quickly as possible”.
Other models will still be available for purchase, but an import ban would affect the Apple Watch Series 6 and later, and any Apple Watch Ultra models imported after the end of an upcoming review period. However, sales of the Apple Watch SE will not be affected, according to Apple.
Apple released its Series 9 phone in September. It features a custom S9 chip for faster processing and allows hand gestures to control the watch, thanks in part to an improved neural engine that processes data from sensors and machine learning.
An ongoing dispute
Apple said it strongly believes the ITC’s findings are inaccurate and should be overturned. It also plans to appeal the decision to the Federal Circuit.
In addition, Apple said it has submitted evidence demonstrating how a ban would negatively impact healthcare, scientific and medical research, and Apple Watch users who rely on the ECG, blood oxygen and other health-related features.
Masimo CEO Joe Kiani said he believed the decision to stop selling the devices was the latest salvo in the ongoing patent battle.
“This was a willful infringement,” Kiani said, calling the sales halt a pressure tactic on Biden.
Apple hasn’t tried to settle the case with Masimo, but Kiani said he’s open to it.
The companies have long been embroiled in ongoing disputes. In October 2022, Apple filed two patent infringement lawsuits against Masimo, claiming the company copied patented features from the Apple Watch into Masimo’s W1 medical smartwatch.
Impact on sales
David McQueen, director at ABI Research, said the decision to keep the watches on sale until December 24 should help soften the financial blow of the pause, giving shoppers a few more days to buy the devices before Christmas.
“While Apple is the leading player in the sector with around 24% market share, it may not actually affect its business too much if it can drive sales in the last few days, assuming there is available stock,” he said. “It may be able to ride out the holiday season without too much of an impact on sales.”
Apple sold 49 million smartwatches in 2022, and about 26.7 million in the first nine months of 2023.
“It will be interesting to see how long the dispute lasts or when Apple opens its wallet and when the ban is lifted,” he added.
