In late 2023, the Biden Administration upheld an ITC ruling, effectively banning the sale of Apple Watch Series 9 and Ultra 2 in the United States. This ruling was due to a patent infringement dispute involving Masimo Corp, a medical technology company. Apple’s appeal temporarily halted the ban, but it resurfaced, leading to a brief suspension of sales just before Christmas.
Key Highlights:
- Apple faced an import ban on its Apple Watch Series 9 and Ultra 2 models in the U.S.
- The ban was imposed following a ruling by the U.S. International Trade Commission (ITC) due to patent infringement claims by Masimo Corp.
- To avoid the ban, Apple removed the blood oxygen feature from these models.
- This decision received approval from U.S. Customs, allowing Apple to continue sales.
- The Apple Watch Series 9 and Ultra 2 briefly disappeared from Apple’s online store but returned after a week.
- Apple is currently awaiting a ruling on its motion for a stay during the appeal process.
Apple’s Response and Strategy
To circumvent the ban, Apple strategically decided to remove the blood oxygen feature from the disputed models. This move was significant as the feature was previously marketed as a key health-related capability. The U.S. Customs and Border Protection agency concluded that the redesigned watches, sans the blood oxygen feature, fell outside the scope of the import ban. Consequently, Apple could continue marketing and selling these watches in the U.S.
Impact on Consumers and the Market
This decision may have ramifications for consumer interest. The blood oxygen feature, while not medical-grade, was a notable aspect of Apple’s health-oriented branding. Its removal could potentially affect customer demand for the latest models. However, it’s worth noting that currently sold units still retain this feature. The outcome of Apple’s ongoing legal appeal will further clarify the long-term availability of these models in the U.S. market.
Looking Ahead
Apple awaits a decision from the U.S. Court of Appeals for the Federal Circuit regarding its motion for a stay throughout the appeal period. This period could extend for a year or more, during which the future of the Apple Watch Series 9 and Ultra 2 in the U.S. market remains uncertain.
Consumer Impact and Market Dynamics
- Consumer Perceptions: The removal of the blood oxygen feature, a key health-related capability, might affect consumer perceptions and demand for the new models. However, existing units in circulation still retain this feature.
- Market Availability: Apple Watches with the blood oxygen feature are still available through third-party retailers and in international markets, offering alternatives for consumers seeking this specific functionality.
- Future Implications: The ongoing legal battle and its eventual outcome will significantly impact Apple’s future product strategy and its approach to incorporating health-related technologies in its devices.
Apple’s tactical decision to remove the blood oxygen feature from its latest Apple Watch models exemplifies the company’s agility in navigating complex legal challenges. While this move allows the continuation of sales in the U.S., it also raises questions about future product strategies and consumer responses.
