In a recent turn of events, Apple’s attempt to delay a US sales ban on its Series 9 and Ultra 2 watches has been rejected by regulators. This decision, made by the US International Trade Commission (ITC), stems from an earlier ruling that found the tech giant violates patents belonging to medical tech company Masimo due to its blood oxygen tracking functionality in certain watches. The rejection leaves the fate of reversing the ban in the hands of President Joe Biden, adding a layer of uncertainty for the tech giant.
ITC Stands Firm on Ruling, Apple Pulls Series 9 and Ultra 2 Watches
ITC Stands Firm on Ruling, Apple Pulls Series 9 and Ultra 2 WatchesThe ITC’s decision in October, echoing an earlier judgment by one of its judges, declared that the company had infringed upon Masimo’s patents. Despite Apple expressing disagreement with the findings, the company announced plans to proactively remove the Series 9 and Ultra 2 watches from US shelves. With the ITC denying the request to delay the ban, the last day to purchase these models online is set for December 21, while retail stores will cease selling them outright on December 24. Third-party sellers may continue until their supplies run out.
Apple’s Immediate Challenge: White House Review and Unlikely Intervention
Apple’s Immediate Challenge: White House Review and Unlikely InterventionWhile the company intends to appeal the ITC’s decision, the company’s immediate hope to reverse the sales ban before Christmas lies with the White House. The Biden administration has had a 60-day window, expiring on December 25, to veto the ITC’s ruling. However, experts suggest that a last-minute intervention from President Biden is unlikely, citing historical precedent where presidents rarely exercise disapproval authority granted by the ITC.
Potential Losses for Apple and Ongoing Strategies
The sales ban could translate into significant losses for the tech giant, estimated at $300 to $400 million in holiday-season sales. Despite this setback, it represents a small fraction of the expected $120 billion revenue the company anticipates between October and December. Apple’s attorneys have been exploring various avenues, including potential workarounds through software updates. Additionally, the company’s history of navigating legal challenges and appealing unfavourable rulings suggests that the tech giant will continue to pursue all available options to mitigate the impact of the ban.
Apple’s failure to secure a delay in the US sales ban for its Series 9 and Ultra 2 watches poses challenges for the company during a crucial holiday season. The rejection by the ITC and the uncertainty surrounding White House intervention add complexity to Apple’s legal and strategic landscape. As the tech giant navigates this setback, the industry will closely watch for developments in the appeal process and any potential shifts in the administration’s stance, impacting the future availability of these Apple Watch models in the US market.
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