Forced Suspension of Apple’s Two Apple Watch Models! US Trade Commission Blocks Blood Oxygen Patent Infringement

Apple will suspend the sale of Apple Watch Series 9 and Ultra 2 on its official website starting from the 21st of this month, and three days later, they will be removed from physical stores. This is due to the alleged infringement of the blood oxygen sensing function of the Apple Watch by Masimo, a biotechnology company. Apple Watch is the leader in smartwatches, accounting for 34.1% of global smartwatch shipments and 60% of global market revenue in 2022. However, according to the latest news, Apple will suspend the sale of Apple Watch Series 9 and Ultra 2 on its official website and in physical stores due to the alleged infringement of Masimo’s patent for the blood oxygen sensing function. Note: The SE model, which has already been sold and does not include the mentioned function, is not affected. The decision on whether Apple can overturn the ruling is now in the hands of the Biden administration. This decision stems from the ruling of the U.S. International Trade Commission (ITC), which found Apple guilty of patent infringement and intellectual property rights infringement. Masimo stated that even large companies must comply with the law. The case is currently under review by the Biden administration, with a deadline of December 25th. If President Biden does not take action to veto before the deadline, the ban will take effect on December 26th, prohibiting the import and sale of Apple Watch series with blood oxygen measurement function in the United States. In addition to taking administrative measures, Apple is also attempting to change the algorithm for blood oxygen measurement on the Apple Watch through software updates, according to Bloomberg’s report this week. However, Masimo believes that this is not enough because the patent also involves hardware design. Unless there is a significant change in design, it will not be able to avoid the suspicion of patent infringement. What should Apple do next? Since President Biden has already refused to veto the ban on Apple Watch infringing on the patent of electrocardiogram manufacturer AliveCor earlier this year, experts predict that Biden is unlikely to overturn the ITC ban this time. Professionals estimate that if Apple wants to remove the relevant hardware from the Apple Watch, it may take at least three months to produce and ship a new model, not to mention the time required for customs approval. Therefore, if Apple wants to make changes to the hardware, it may take a considerable amount of time. However, the ban currently only applies to the United States and has no immediate impact on consumers in other regions. Although the United States is Apple’s largest market, the current impact on stock prices seems limited.