On October 26th this year, the International Trade Commission (ITC) ruled that Apple's Apple Watch Series 9 and Apple Watch Ultra 2 watches infringed on Masimo's pulse oximeter patent. According to the ruling, Apple will cease selling these two models of Apple Watch in the United States in December.
The Ultra 2 and Series 9 account for the vast majority of Apple's watch sales. At the end of the shopping season in the United States, the impact of this sales ban on Apple's revenue is clearly significant. For this reason, the Biden administration in the United States is also hesitating, considering whether to veto this sales ban.
White House: US Secretary of Trade has the authority to veto bans
On Tuesday Eastern Time, White House Press Secretary Karine Jean Pierre stated that the Biden administration is tracking the ban on the sale of the Apple Watch.
She emphasized that US Trade Representative Katherine Tai is "carefully considering all factors in this case" and has the authority to veto this decision.
According to the law, after the ITC ruling is made, the US government has 60 days to consider whether to veto the ban, which means that the final deadline for the US government to consider and make a decision is December 25th.
Jean Pierre stated that the White House does not want to express its position "before any decision is made by the trade department," and added that the power to decide on the outcome of this case lies in Daisy's hands.
Masimo: Apple is putting pressure on Biden
On the other hand, Masimo CEO Joe Kiani was open to reaching a settlement with Apple in an interview, but he did not disclose his specific requirements for the amount of the settlement.
In addition, he emphasized that Apple has not yet proactively contacted Masimo. He believes that Apple's decision to take down the Apple Watch Series 9 and Ultra 2 before Christmas is a show, with the aim of "deliberately putting pressure on the Biden administration to veto the ban.".
According to US law, the President of the United States has the power to intervene and prohibit certain prohibitions, but this situation is not common in US history.
Ten years ago, the US government also stepped in to help Apple. In 2013, Apple was defeated in a trade dispute with Samsung Electronics in South Korea. Apple's iPhone and some iPad models were banned from entering the US market, and then US President Obama vetoed this ban.
But the situation this time is different from last time. The opponent of Apple's trade conflict last time was a South Korean company, and this time, its conflict opponent is also a domestic American company - Masimo is also headquartered in California - which may make the US government even more difficult.
Amidst the hesitation of the US government, Apple's market value has exceeded $3 trillion, making it the world's highest valued enterprise. Since the beginning of this year, Apple's stock price has soared by over 50%, with a market value increase of $1 trillion, surpassing the market value of other stock markets except for the six major global stock markets.