Why is the ban on importing Apple Watch in America back?

For some, the only option when it comes to much of the technology we use on a daily basis is Apple. Whether that be the iPhone, the iPad, the Mac, the AirPods or even the Apple Watch, it’s all got to be seamlessly interconnected for complete enjoyment and peace of mind. But, as we’ve witnessed before, the battle for dominance in the world of mobile devices is wrought with complications. Just take the current situation with their popular wearable.

Apple taking oxygen out of Watch battle

On Wednesday, Apple officially confirmed the removal of a blood oxygen monitoring feature from two flagship Apple Watch models in the United States. This decision comes as part of a legal battle over patents related to the technology behind the feature. Anticipating a potentially year-long legal resolution, analysts predicted that Apple would opt to disable the feature marketed for fitness purposes rather than cease the sale of devices in one of its major markets.

The affected models, Apple Watch Series 9 and Ultra 2, without the blood oxygen monitoring feature, are set to be available for purchase on Apple’s website and stores from 6 a.m. Pacific Time (9 a.m. ET) on Thursday. Following the ruling by the U.S. Court of Appeals for the Federal Circuit, Apple’s shares closed 0.5% lower at $182.68. This ruling prevents the sale of the models at the center of the legal dispute with medical technology company Masimo.

Masimo takes bite out of Apple imports

In December, Masimo secured a decision from the U.S. International Trade Commission (ITC) to halt imports of these Apple Watch models, which constitute about a quarter of the global smartwatch market. Masimo’s founder and CEO, Joe Kiani, emphasized the significance of the court’s decision in upholding the intellectual rights of American inventors.

Apple expressed strong disagreement with the ITC decision and subsequent orders, asserting that they should be reversed. The impact of the legal dispute is limited to the Series 9 and Ultra 2 models sold in the U.S., with existing Apple Watches and devices sold outside the United States remaining unaffected.

Oxygen icon yes, O2 feature no

Starting Thursday, the Series 9 and Ultra 2 models in the U.S. will still display an app icon for the blood oxygen feature. However, upon tapping these icons, users will be informed that the features are no longer available. Ben Bajarin, CEO of analyst firm Creative Strategies, had expected Apple to disable the blood oxygen features on the affected models rather than halt their sales. Although Apple does not disclose specific Apple Watch or U.S. sales figures, the device contributes significantly to the company’s wearables sales segment.

The ITC’s import ban briefly went into effect on December 26, but the Federal Circuit lifted it on December 27 while considering Apple’s request for a long-term pause. Masimo accuses Apple of employee poaching and stealing pulse oximetry technology for use in Apple Watches.

Apple has asked the Federal Circuit to maintain the hold on the ban during the appeals process, emphasizing potential harm to the company, its suppliers, and the public if the ban is enforced. Meanwhile, Apple has countersued Masimo for patent infringement, characterizing Masimo’s legal actions as a strategic move to clear the path for its own competing watch.

In the third quarter of 2023, Apple’s wearables, home, and accessory business, including the Apple Watch, generated $8.28 billion in revenue, according to an Apple company report.