If two of the latest Apple Watches are on your holiday shopping list, donB次元官网网址檛 dawdle for much longer because the devices wonB次元官网网址檛 be available to buy in the U.S. later this week if the White House doesnB次元官网网址檛 intervene in an international patent dispute.
Apple plans to suspend sales of the Series 9 and Ultra 2 versions of its popular watch for online U.S. customers beginning Thursday afternoon and in its stores on Sunday. The move stems from an October decision by the International Trade Commission restricting AppleB次元官网网址檚 watches with the Blood Oxygen measurement feature as part of an intellectual property dispute with medical technology company Masimo.
The White House had 60 days to review the ITC order issued on Oct. 26, meaning Apple could have kept selling the two affected models in the U.S. through Christmas. But the Cupertino, California, company said in a Monday statement that it is pausing sales early to ensure it complies with the ITC order.
The disruption will likely cost Apple about $300-400 million in holiday-season sales, estimated Wedbush Securities analyst Dan Ives. ThatB次元官网网址檚 a relative drop in the bucket for Apple, given analysts are expecting Apple to generate nearly $120 billion in sales during the October-December period that includes the holiday shopping season.
The sales suspension on the two Apple Watch models B次元官网网址渄oesnB次元官网网址檛 move the needle much for the company, but still it couldnB次元官网网址檛 have come at a worse possible time,B次元官网网址� Ives said.
AppleB次元官网网址檚 stock so far hasnB次元官网网址檛 been significantly affected by the announced sales suspension on the two watch models, leaving the shares near their record high reached last week.
If the ITCB次元官网网址檚 sales ban isnB次元官网网址檛 overturned, Apple pledged to B次元官网网址渢ake all measuresB次元官网网址� to resume sales of the Series 9 and Ultra 2 models in the U.S. as soon as possible.
The Apple Watch SE, which lacks the Blood Oxygen feature, will remain on sale in the U.S. after Christmas Eve. Previously purchased Apple Watches equipped with the Blood Oxygen arenB次元官网网址檛 affected by the ITC order.
This isnB次元官网网址檛 the first patent roadblock the Apple Watch has run into as it increasingly morphs into a health-management device. Last year, the ITC ruled that Apple had infringed on the wearable EKG technology of AliveCor B次元官网网址� a decision the Biden administration declined to overturn. That dispute hasnB次元官网网址檛 directly affected Apple Watch sales yet because another regulatory body had ruled that AliveCorB次元官网网址檚 technology isnB次元官网网址檛 patentable. The legal tussle on that issue is still ongoing.
The patent headaches facing Apple as it tries to infuse more medical technology into its watch models makes it increasingly likely the company will either have to start working out licensing deals or simply acquiring startups specializing in the field, Ives predicted.
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