Apple is facing a significant challenge as it discontinues sales of certain Apple Watch models in the United States due to a patent dispute.
The International Trade Commission’s recent ruling found Apple in violation of medical company Masimo’s pulse oximeter patent, prompting Apple’s decision to preemptively remove its best-selling smartwatches from the market.
Here are four key points to understand about this Apple Watch fiasco:
Models Unavailable:
Apple will stop selling the Apple Watch Series 9 and Apple Watch Ultra 2 in the United States, beginning on Thursday via Apple.com and later in retail stores after December 24.
While other models are currently available, the possibility of an import ban could impact sales of the Apple Watch Series 6 and later, as well as all models of Apple Watch Ultra.
However, the Apple Watch SE will remain unaffected.
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Dispute with Masimo:
The decision to withdraw these popular products arises from an ongoing dispute with Masimo over Apple’s use of a pulse oximeter feature.
The ITC found that certain Apple Watches infringed on Masimo’s patents, initiating a review period during which Apple can negotiate a licensing deal with Masimo or appeal to veto the ban.
Apple contends that the ITC’s findings are inaccurate and plans to challenge the decision in the Federal Circuit.
President Biden’s Role:
President Biden has a 60-day window to review the ITC’s ruling before a potential ban takes effect.
This isn’t the first time a U.S. president has been involved in an Apple-related patent dispute, with President Obama overturning an ITC ban in 2013.
Apple hopes for a favorable review or an opportunity to address concerns during this period.
Impact on Apple:
Apple’s decision to halt sales before the end of the review period is seen as an effort to comply with the law while minimizing fiscal impact.
Industry experts suggest that while there might be a short-term impact on sales in the first quarter of the following year, Apple’s reputation and market share could recover if the dispute is resolved favorably.
The company sold 49 million smartwatches in 2022 and approximately 26.7 million in the first nine months of 2023.
In the coming days, attention will be on the evolving patent dispute and its potential implications for Apple, its customers, and the smartwatch market.
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Apple Watch Faces Setback: Key Points To Understand, Apple Watch Faces Setback: Key Points To Understand
