Apple has confirmed that it is set to discontinue sales of its flagship Apple Watch models, including the Apple Watch Series 9 and Apple Watch Ultra 2, in the US and according to Wedbush Securities analyst Dan Ives, if Apple proceeds with discontinuing the sales, the decision is likely to result in a holiday-season sales loss of approximately $300-$400 million for the tech giant, as reported by Insider.
Starting later this week, these Apple Watch models will no longer be offered for purchase directly from Apple. This decision follows an International Trade Commission (ITC) ruling amid a protracted patent dispute between Apple and a medical technology company named Masimo, specifically related to the Apple Watch's blood oxygen sensor technology.
This is one of those moments, experts suggest that unless there's a Christmas miracle, Apple is unlikely to evade the ban, as per a report by The Verge. Surprising many, the company took a proactive step yesterday by removing the watches from its online store. Starting from 3 p.m. ET on Thursday (December 21) Apple's website in the US will not accept orders for the Apple Watch Ultra 2 and Apple Watch Series 9, both released this year. Additionally, in-store inventory at Apple retail locations will no longer be accessible after December 24.
In October, the International Trade Commission upheld a judge's decision from January, prompting the case to enter a 60-day Presidential Review Period under the Joe Biden administration. While President Biden has the authority to veto the ruling during this period, no such action has been taken as of now. Apple has now announced to proactively initiate measures to comply with the ITC's decision ahead of the expiration of the Presidential Review Period on December 25.
The directive prohibits the importation of all Apple Watch Series 9 and Ultra 2 models into the US after December 25. Moreover, Apple would face restrictions in selling these devices to resellers. Consequently, if the ruling stands, it has the potential to affect the availability of Apple Watches for other retailers.
Notably, days before the looming ban on its smartwatches, Apple devised a strategy to salvage its $17 billion business, said a report by news agency Bloomberg. The report mentioned that the company's engineers were working to implement software fixes and explore potential workarounds. Specifically, adjustments to algorithms measuring a user's blood oxygen level -- said to infringe on Masimo Corp.'s patents -- were in progress. The focus is on modifying how the technology calculates oxygen saturation and presents the data to users, as informed by individuals familiar with the ongoing efforts.