Explanation Needed: Why is Apple halting sales of their Apple Watch Series 9?
As best I can, I will explain to readers who might be abreast of the whole fiasco of what's going on with one of Apple's most popular devices, the Apple Watch Series 9. In case you have not heard, Apple is halting their Apple Watch Series 9 sales. Why, you ask?
Let me explain.
In early 2023, the US International Trade Commission, the most potent agency in the country, ruled Apple had infringed on two patents from Masimo. A company known for manufacturing medical devices. OUCH! Due to this infringement, ITC is taking extreme measures by imposing an import ban on the Apple Watch Series 9 and Ultra 2, which is set to take place on December 26th. Tech titans like Apple are impervious to the financial effects of lawsuits because it comes with territory.
But this situation that's going on with Apple is severe and is happening at an anachronistic time. The imposed ban has caused Apple to take drastic measures by pulling its watches from its online store, scheduled for December 21st at 3 p.m. ET ( taking place this past Thursday by the time the post was published).
The Origin of this Drama
So you're probably asking, "How did we get to this point?" This dispute between Apple and Masimo, known for their innovative oximetry tech, better known as SpO2, claims Apple is using their patented technology without permission. Again, OUCH!
This dispute between the two companies didn't just happen this year. It began ten years ago when Apple reached out to Masimo to form a partnership to implement the blood oxygen features on its wearable devices. During that time, Apple allegedly managed to pry engineers and its chief medical officer from Masimo—a questionable move by Apple that was probably done covertly. The next thing you know, Apple debuted the SpO2 sensor feature on the Apple Watch Series 6 in the fall of 2020. This sensor measures the amount of oxygen in your blood.
This is the W1 Medical smartwatch. Does it look familiar? Si or No
To the displeasure of Masimo, in 2020, they filed a lawsuit in the US District Court in the Central District of California. The company claims that Apple stole trade secrets and infringed on ten patents. This particular case is currently ongoing. With no resolution in sight, the company pulled a shrewd chess move by filing a separate case with ITC, which took place in 2021. Apple didn't take this lawsuit lightly; they counter-sued Masimo, claiming the company produced a Masimo W1 Medical Watch identical to the Apple Watch. However, in January 2023, ITC ruled in favor of Masimo. They were stating Apple Watches has indeed infringed on Masimo patents.
What’s the play, Apple?
Where Apple goes from here is a good question. This ban on their most popular device is certainly cost affecting the sum of quarter billion dollars. But their countermoves are open, yet not easy. They can ask the President to veto the ITC ruling. But the process in itself is time-consuming.
I predict when all is said and done, Apple will cave and settle with Masimo. Or they may even eliminate the SpO2 feature via software updates. Either way, how will it all play out long term? Remains to be seen.
