Potential Impact on Sales
According to Ryan Reith, program vice president at market research firm IDC, the US holiday sales of Apple Watches are not likely to be significantly affected. The full impact of the ruling, if it stands, is expected in January and February, which are typically slower sales months for Apple in the US.
Apple has sufficient inventory of the Watch 8 and SE models to meet demand during this period. The Series 9 and Ultra 2 models will continue to be available for purchase outside of the United States, including during the Lunar New Year season in Asia.
Patent Dispute with Masimo
Masimo has accused Apple of poaching its employees, stealing its pulse oximetry technology, and incorporating it into the Apple Watch. In response, Apple has filed a separate patent infringement lawsuit against Masimo in federal court in Delaware. The tech giant has characterized Masimo’s legal actions as an attempt to remove competition in the smartwatch market.
Historical Precedents
This dispute marks a test for the Biden administration, as no ITC ruling has been overturned by a presidential administration since 2013. In that case, President Obama’s administration vetoed an import ban on Apple’s iPhones and iPads in a patent dispute with Samsung. Earlier this year, the Biden administration chose not to veto a separate import ban on Apple Watches following a patent-infringement complaint from medical technology company AliveCor.
Apple’s Business and Revenue
Apple’s wearables, home, and accessory business, which includes the Apple Watch, brought in $8.28 billion in revenue during the third quarter of 2023, according to the company’s financial report.