Apple to pause some Apple Watch sales after intellectual property dispute

Key Points

• Sales Pause Due to IP Dispute: Apple has decided to temporarily halt U.S. sales of the Apple Watch Series 9 and Apple Watch Ultra 2. This move is a result of an intellectual property dispute concerning the Blood Oxygen feature between Apple and medical technology company Masimo.
• ITC Orders Impacting Sales: Two orders issued by the U.S. International Trade Commission on Oct. 26 are at the center of this decision. These orders, if upheld, would restrict Apple’s ability to sell products featuring the Blood Oxygen feature. The White House had a 60-day window to review the restrictions, but Apple initiated the sales pause early to comply with the order if it stands.
• Potential Import Restrictions and Cease-and-Desist Order: If the ITC’s decision stands, one order will prevent Apple and its affiliates from importing watches using the Blood Oxygen feature and related materials. The second order, a cease-and-desist, instructs Apple to stop selling products with the Blood Oxygen feature. Apple, disagreeing with the order, plans to take measures to resume sales, emphasizing that existing owners will not face issues, and there is no change to availability outside the U.S. The wearables, home, and accessories unit is Apple’s third-largest revenue generator.