Apple faces a significant blow as the US Court of Appeals for the Federal Circuit has ruled against the tech giant, prohibiting the sale of its Series 9 and Ultra 2 Apple Watches in the United States. This decision comes as a consequence of an ongoing legal dispute over patents related to a blood oxygen measurement feature, sending Apple shares down by 0.5 per cent, closing at US$182.68 (RM861.79).
The ruling follows a December decision by the US International Trade Commission (ITC) to halt imports of these Apple Watch models. As Apple appeals the ITC’s decision, the affected watches cannot be imported starting at 5 pm ET (2200 GMT) today, potentially impacting the company’s sales and presence in the smartwatch market.
According to Reuters, analysts predict that Apple may temporarily disable the disputed blood oxygen measurement feature to comply with the ban, allowing the watches to remain available for purchase during the legal battle, which is estimated to take about a year.
Apple Watches constitute approximately a quarter of the global smartwatch market, according to Counterpoint Research, underscoring the significance of the ban on Series 9 and Ultra 2 models. The legal dispute revolves around intellectual property rights, with medical technology company Masimo asserting its patents over the contested feature.
Masimo’s founder and chief executive, Joe Kiani, emphasised the importance of the ruling, stating, “it affirms that even the largest and most powerful companies must respect the intellectual rights of American inventors.”
According to Reuters, Apple representatives have not yet responded to requests for comment on the court’s decision.
In a separate development, US Customs and Border Protection, on January 12, determined that a proposed redesign from Apple could potentially allow the import of reconfigured versions of the latest Series 9 and Ultra 2 Apple Watches without violating ITC restrictions. The details of this redesign remain undisclosed, leaving room for speculation about potential software updates to address the patent-related concerns.
As the legal battle unfolds, Apple’s share performance remains in the spotlight, reflecting the immediate market impact of the court’s decision and the broader implications for the company’s flagship smartwatch offerings.
