Apple Inc. has announced that it will be halting the sales of its popular Watch Series 9 and Ultra 2 models in the United States just before the Christmas season. This decision comes as a result of an ongoing patent dispute regarding the blood oxygen sensor technology used in these watches. According to reports, sales will stop online on December 21st and in physical stores from December 24th.
The dispute stems from a ruling made by the International Trade Commission (ITC) back in October. The ITC was reviewing a complaint lodged by medical technology company, Masimo Corp., regarding Apple's alleged infringement of their patents related to the blood oxygen sensor technology. The ITC sided with Masimo Corp., prompting Apple to stop selling the affected watch models. It is important to note that the Apple Watch SE, which lacks the blood oxygen sensor, will not be impacted by this decision.
The timing of the sales halt is strategic, as it coincides with the expiration of the presidential review period on December 25th. Apple has reportedly made this preemptive announcement in response to the impending expiration. The company plans to appeal the ITC ruling in hopes of overturning the decision.
This setback comes as a blow to Apple, as the iPhone and Apple Watch contribute significantly to the tech giant's overall revenue, particularly during the busy holiday quarter. With the halt in sales of the Watch Series 9 and Ultra 2, Apple will have to rely on other product lines to make up for any potential loss in revenue. The impact on Apple's financial performance remains to be seen.
In response to the news, Apple's shares experienced a dip of 1.2% in the New York market. Investors are likely monitoring the situation closely to gauge the potential impact on the company's performance. Apple has not yet responded to requests for comment on the matter.
As the legal battle continues, consumers eagerly await the outcome, hoping for a resolution that will allow the popular Apple Watch models to return to the market. In the meantime, Apple will need to strategize its next moves to mitigate the effects of this patent dispute while continuing to innovate in its product offerings.