Arr! Apple Watch's newfangled models be puttin' on hold for a wee two fortnights, mateys!
2023-12-18
Kurt "CyberGuy" Knutsson hath brought news, me hearties! Apple, those scurvy dogs, be puttin' a stop to sellin' their newfangled Apple Watch in the States! 'Tis all 'cause o' some pesky patent quarrel on the high seas! Arrr, what a twist of fate!
Apple Inc. has announced that it will halt sales of the latest Apple Watch models in the United States due to a patent dispute with Masimo Corp., a company specializing in medical monitoring technology. The decision comes in response to a recent ruling by the International Trade Commission (ITC) that Apple's incorporation of a blood oxygen sensor in its watches infringes on Masimo's patents. The ruling is currently under a presidential review and is expected to conclude by December 25.Apple has stated that it aims to comply with the ruling if it stands, but the company intends to appeal as it believes the decision is flawed. This unexpected disruption in Apple Watch sales presents a significant challenge for the tech giant, as its health-centric features have been major selling points for the device. The impacted models, the Apple Watch Series 9 and Ultra 2, contribute significantly to Apple's annual revenue in its Wearables, Home, and Accessories segment.
While the Series 9 and Ultra 2 will be removed from Apple's online and physical stores, the SE model, which does not include the blood oxygen sensor, will continue to be sold. Current owners of the Series 9 and Ultra 2 will not be affected, and their devices will continue to function as normal. The announcement has caused a slight downturn in Apple shares, while Masimo's shares experienced a boost.
As Apple navigates this legal challenge, third-party retailers may still offer the affected models, potentially sustaining Apple's sales figures for the fiscal first quarter. Apple has updated its retail stores with new signage, omitting images of the affected models, and is working to manage customer expectations. The resolution of this dispute may set precedents for future technology patent cases and influence how tech companies approach the development of health-related features.