Apple Watch Sales Temporarily Halted Amidst Intellectual Property Dispute

In a surprising twist, Apple has announced a temporary suspension of U.S. sales for two of its latest Apple Watch models due to an ongoing intellectual property dispute surrounding the Blood Oxygen feature. The decision follows orders from the U.S. International Trade Commission (ITC) and underscores a clash between Apple and medical technology company Masimo.

The ITC’s October 26 orders, prompted by an intellectual property dispute, restrict Apple’s ability to sell products featuring the contested Blood Oxygen technology. Despite no immediate disruption for U.S. customers, online sales of the Apple Watch Series 9 and Apple Watch Ultra 2 will pause Thursday afternoon, with in-store sales ceasing after Sunday.

In anticipation of the White House’s 60-day review window (expiring on December 25), Apple initiated the pause early to ensure compliance if the ITC ruling persists. The market responded with Apple’s stock experiencing a minor decrease (less than 1%), while Masimo saw a gain of just over 3%.

Potential ramifications include import restrictions on watches featuring the Blood Oxygen technology and related materials, as well as a cease and desist order instructing Apple to halt sales of products with the disputed feature. Apple has pledged to take all necessary measures to resume sales promptly.

Reassuring customers, Apple confirmed that those who have already purchased the affected Apple Watches will not encounter issues, and global availability remains unaffected.

Financially, Apple’s wearables, home, and accessories unit, the company’s third-largest revenue generator, amassed $9.3 billion in the last quarter. The sales pause could impact Apple’s financial performance, making this dispute significant for both the tech giant and Masimo.

In response to the ITC’s orders, Apple expressed strong disagreement and a commitment to exploring legal and technical solutions. Masimo emphasized the ruling’s significance, stating that even the world’s most powerful company must abide by the law.

As this intellectual property dispute unfolds, industry observers and consumers await updates, recognizing the uncertainty surrounding the potential impact on Apple, Masimo, and the broader wearables market.

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