Why will sales of some Apple Watch models be suspended? Understand

Last Monday (18), Apple announced that it will stop selling some versions of the Apple Watch in the United States. The measure, which comes into effect at the end of this week, was taken following a recent decision by the International Trade Commission that concluded that the company infringed the patent on medical company Masimo’s pulse oximeter.

This technology uses light to read oxygen levels in the blood. It is worth remembering that Apple introduced a pulse oximeter feature using this method in 2020 on its Apple Watch Series 6 line.

Now Steve Jobs’ company faces the possibility of banning these models unless they make substantial changes to the way the Apple Watch works. Another solution would be for President Joe Biden to veto the decision during a review period. Although the review period doesn’t end until December 25th, Apple said it is “taking preventive measures to comply if the decision is upheld” by removing some from the market.

Here’s a closer look at everything you need to know:

Which models will be unavailable?

Apple told CNN that it will no longer sell its Apple Watch Series 9 and Apple Watch Ultra 2 in the United States, starting Thursday (21) on its website, and in stores after December 24. Other models will remain available for purchase for now, but if the import ban passes, it will also be difficult to acquire other models.

In other words, all models starting from the Apple Watch Series 6 and the Apple Watch Ultra would qualify. The ban will not affect sales of the Apple Watch SE, according to Apple. Some retailers, including Best Buy, told CNN they still have plans to sell the devices.

If the order stands, Apple said it will “continue to take all measures” to make it available to customers “as quickly as possible.”

Why were sales suspended?

Nearly two months ago, the ITC found that several Apple Watches infringed on Masimo’s pulse oximeter patents, triggering a review period that would allow Apple to make a licensing deal with Masimo or appeal to veto the ban.

Masimo CEO Joe Kiani told CNN that Apple has not approached the company about a licensing deal or settlement, but that it is open to both.

Meanwhile, Apple said it strongly believes the ITC’s findings are inaccurate and should be reversed. It also plans to take the decision to the Federal Circuit. Additionally, Apple said it has presented evidence demonstrating how a ban would negatively impact health, scientific and medical research, and Apple Watch users who rely on ECG, blood oxygen, and other health-related features. Pulse oximeters can be particularly useful for people with a number of health problems, including asthma, lung cancer, and heart failure.

Kiani said he believes the decision to suspend sales of the devices is the latest salvo in the ongoing fight over patents. Masimo also argued in court that Apple ripped off more than two dozen of its employees before launching its W1 medical smartwatch in May 2022.

The dispute intensified further last year when the Apple Watch maker filed two patent infringement lawsuits against Masimo, alleging that the company copied patented Apple Watch features for its W1 device.

Why is President Joe Biden involved?

President Biden has 60 days to review the ITC’s decision before the ban takes effect. This is not the first time that a president has intervened in a patent issue involving Apple.

In 2013, President Obama vetoed an ITC decision to ban older iPhones and iPads after determining that Apple infringed on one of Samsung’s patents. It was the first time the government overturned an ICT ban in more than 25 years, according to the New York Times.

How could the decision impact Apple?

According to Jitesh Ubrani, research manager at market research firm IDC, Apple’s reputation is at stake. “It’s not a good look,” he said. “There may be an impact on sales in the first quarter of next year, but at the end of the day, no one wants to get caught infringing patents.”

He said Apple’s decision to remove the devices before the end of the review period was intended to “put them in a better light.”

“This shows that they want to comply with the law to the best of their ability and at the same time be fiscally responsible,” Ubrani added.

As for sales, David McQueen, director of ABI Research, said the decision to make the watches available for purchase in stores until December 24 should help soften the financial blow of the change, giving buyers a few days left to purchase the clock before Christmas.

“Although Apple is the main player in the industry with around 24% market share, it may not affect its business much if it manages to increase sales in these final days, assuming there is stock available,” he said. “We may be able to get through the holiday season without causing much of an impact on sales,” he concludes.

Apple sold 49 million smartwatches in 2022 and around 26.7 million in the first 9 months of 2023.