To prevent the sales ban on Apple watches from taking effect again in the United States, Apple (Nasdaq: AAPL) plans to remove the blood oxygen sensor technology from its latest two smartwatches, the Apple Watch Ultra 2 and the Apple Watch Series 9.
On January 15th local time, according to medical technology company Masimo, Apple has obtained approval from the US Customs and Border Protection (CBP) and may redesign the Apple watch, which is at risk of being banned, to no longer include blood oxygen detection. Masimo has a long-standing patent dispute with Apple over blood oxygen sensor technology.
Previously, Apple appealed against the sales ban issued by the International Trade Commission (ITC) in the United States, stating that the company had submitted redesigned versions of the two smartwatch models involved in the ban to CBP. CBP is responsible for enforcing the import ban and will determine whether the redesigned Apple watch still infringes on the patents of Massimo Medical.
According to a document submitted by Massmore Medical on the 15th, CBP approved technical modifications to Apple Watch models on the 12th, including the removal of blood oxygen sensors. Lawyers from Massmore Medical confirmed to foreign media that as long as the blood oxygen monitoring function is removed, the US government will not have any objections to the import of Apple watches.
A statement released by Massmore Medical on the same day stated, "Apple stated that its redesigned watch does not include blood oxygen measurement function, which is a positive step for the company to take responsibility."
The court will give a result on Apple's previous motion in the coming days and decide whether to suspend ITC's sales injunction during Apple's appeal period. A spokesperson for Apple stated to foreign media that currently, both watches will continue to provide blood oxygen function. If the court does not approve the suspension of the injunction, Apple will remove the blood oxygen detection function from the watch. Apple expects the entire appeal process to last for one year or more.
According to foreign media analysis, the blood oxygen detection function is one of the biggest selling points of Apple Watch related models, and removing this function may weaken consumer demand. There are reports that Apple is preparing a software update to adjust its blood oxygen detection algorithm, attempting to avoid the patented technology of Massimo Medical. It is unclear if it can be launched before the sales ban resumes. And well-known Apple whistleblower journalist Mark Gurman said that Apple has started shipping new "improved" versions of Apple watches to retail stores in the United States.
The patent dispute between Apple and Massimo Medical over blood oxygen sensors has been ongoing for several years, and has been constantly reversing in recent days.
On December 26, 2023, after a 60 day presidential review period by the US government, the Apple Watch Sales Ban issued by the ITC officially came into effect, and the Apple Watch Ultra 2 and Apple Watch Series 9 with blood oxygen sensor technology will cease sales in the US.
On that day, Apple announced an appeal against ITC's ruling and requested an emergency restraining order from the United States Court of Appeals for the Federal Circuit, stating that ITC's decision was incorrect and the company would suffer "irreparable harm.". The US Federal Circuit Court of Appeals announced the suspension of the sales ban on the second day.
On January 10th of this year, ITC filed a lawsuit with the United States Court of Appeals for the Federal Circuit, formally opposing Apple's previous motion to suspend the sales ban throughout the entire appeal period.
The Apple Watch Series 9 and Apple Watch Ultra 2, which were affected by this sales ban, were released in September 2023 and are currently the main models of Apple watches, starting at $399 and $799 respectively. Although Apple Watch accounts for a small proportion of the company's total revenue, the product plays an important role in Apple's plan to continuously expand its health business.
As of September 30, 2023, Apple's fourth quarter of fiscal year 2023 (third quarter of the calendar year) results showed revenue of $9.322 billion for wearable devices, home products, and accessories, including Apple watches, compared to $9.65 billion in the same period last year, which did not meet analyst expectations.
As of the close of the US stock market on January 15th, Apple rose slightly by 0.18% to close at $185.92, with a market value of $2.87 trillion.