If two of the latest Apple Watches are on your holiday shopping list, don害羞草研究所檛 dawdle for much longer because the devices won害羞草研究所檛 be available to buy in the U.S. later this week if the White House doesn害羞草研究所檛 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 Apple害羞草研究所檚 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. That害羞草研究所檚 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 害羞草研究所渄oesn害羞草研究所檛 move the needle much for the company, but still it couldn害羞草研究所檛 have come at a worse possible time,害羞草研究所� Ives said.
Apple害羞草研究所檚 stock so far hasn害羞草研究所檛 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 ITC害羞草研究所檚 sales ban isn害羞草研究所檛 overturned, Apple pledged to 害羞草研究所渢ake all measures害羞草研究所� 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 aren害羞草研究所檛 affected by the ITC order.
This isn害羞草研究所檛 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 害羞草研究所� a decision the Biden administration declined to overturn. That dispute hasn害羞草研究所檛 directly affected Apple Watch sales yet because another regulatory body had ruled that AliveCor害羞草研究所檚 technology isn害羞草研究所檛 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.
READ ALSO:
