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Apple Watch Sales Paused in US After Patent Ruling
If you have your eyes set on Apple’s latest Watches for holiday shopping, act quickly. The Series 9 and Ultra 2 versions may soon be off the U.S. market due to an ongoing international patent dispute, unless the White House intervenes.
Immediate Sales Suspension
- Affected Watches:
- Apple plans to suspend sales of Series 9 and Ultra 2 watches for online U.S. customers from Thursday afternoon and in its stores starting Sunday.
- Intellectual Property Dispute:
- The suspension results from an International Trade Commission (ITC) decision in October, restricting the sale of Apple’s watches featuring the Blood Oxygen measurement due to a dispute with medical technology company Masimo.
Early Compliance Measures by Apple
- Compliance with ITC Order:
- Apple had 60 days to comply with the ITC order but has chosen to pause sales earlier to adhere to the ruling.
- The Cupertino-based company issued a statement on Monday, emphasizing its commitment to following the ITC order.
White House Involvement
- Review Period:
- The White House has been reviewing the ITC order since Oct. 26.
- The Biden administration is closely monitoring the case, with U.S. Trade Representative Katherine Tai having the authority to decide on the matter.
- Undisclosed Decision:
- White House press secretary Karine Jean-Pierre mentioned that Tai is carefully considering all factors, and the decision has not been disclosed yet.
Financial Impact and Apple’s Response
- Estimated Loss:
- The sales suspension is expected to cost Apple approximately $300-400 million in holiday-season sales, according to analyst Dan Ives.
- Despite the financial impact, Apple’s stock has not been significantly affected, maintaining near-record highs.
- Resumption Measures:
- If the ITC’s sales ban is upheld, Apple commits to taking all necessary measures to resume sales of the Series 9 and Ultra 2 models in the U.S.
Continuation of Other Models
- Available Models:
- The Apple Watch SE, without the Blood Oxygen feature, will continue to be available in the U.S. after Christmas Eve.
- Previously purchased Apple Watches equipped with Blood Oxygen functionality are unaffected by the ITC order.
Patent Challenges for Apple Watch
- Historical Precedence:
- This isn’t the first patent obstacle for the Apple Watch, particularly as it evolves into a health-management device.
- In a previous case, the ITC ruled Apple had infringed on AliveCor’s wearable EKG technology.
- Potential Outcomes:
- Analyst Dan Ives predicts that Apple might need to explore licensing deals or acquire startups specializing in medical technology to navigate patent challenges.
Note: The situation is subject to developments, pending a decision by U.S. Trade Representative Katherine Tai.