US bans import of some Apple Watch models again, Apple to start disabling blood-oxygen feature

A US appeals court has ruled that Apple cannot sell the Series 9 and Ultra 2 Apple Watch models in the US due to an ongoing legal battle with medical technology company Masimo over patents related to a blood oxygen measurement feature.

The court decision, which could extend for a year, may lead Apple to disable the disputed feature during this period to comply with the ban and continue selling the watches.

Following the ruling, Apple’s shares closed 0.5 per cent lower at $182.68. The court specified that Apple is prohibited from importing the affected watches starting at 5PM ET on Thursday while the company appeals a December decision by the US International Trade Commission (ITC) to halt imports of these devices. Apple Watches represent about a quarter of the global smartwatch market.

Masimo’s CEO, Joe Kiani, stated that the ruling emphasizes the importance of respecting intellectual property rights, even for large companies like Apple. Apple has not yet responded to the court’s decision.

Separately, US Customs and Border Protection has determined that a proposed redesign from Apple could allow the importation of reconfigured Series 9 and Ultra 2 Apple Watches without violating the ITC’s restrictions. Apple has not publicly disclosed the redesign details.

Analysts suggest that Apple may choose to disable the blood oxygen features on the affected models rather than cease sales, considering the significance of Apple Watch sales in the wearables segment.

While the legal proceedings impact sales only in the US, Apple Watch’s contribution to the company’s wearables segment was substantial, accounting for $39.84 billion of Apple’s overall $383.29 billion in sales for fiscal 2023.

The ongoing legal dispute involves allegations from Masimo that Apple hired its employees and stole pulse oximetry technology for use in Apple Watches. The ITC had previously barred imports and direct sales of Apple Watches with blood-oxygen reading capabilities in response to Masimo’s complaint.

Apple had briefly halted sales in compliance with the ITC’s import ban, but the Federal Circuit temporarily lifted the ban as it considered Apple’s request for a longer-term pause. Apple resumed sales pending the outcome of the appeals process.

(With inputs from agencies)