New lawsuit forces Apple to halt smartwatch sales in US before Christmas

The American technology giant Apple has been forced to suspend sales of its smartwatch in the US as it faces a looming import ban.

The tech company will stop selling its two most recent models, the Apple Watch Series 9 and Apple Watch Ultra 2, from December 21.

It comes after healthcare technology company Masimo won a patent dispute over the gadget’s blood oxygen sensor at the US International Trade Commission (ITC).

The ruling means that imports of the device will be blocked from Christmas Day unless Joe Biden vetoes the ITC decision.

Apple said it would suspend online sales of the smartwatches from December 21 and stop selling them in-store from 3 pm on Christmas Eve.

Other retailers will be able to continue selling them but the import ban would mean sales lasting as long as supplies are available.

The ruling does not apply to a cheaper version of the watch that does not feature the blood oxygen sensor. The feature is meant as an overall indicator of respiratory health.

Apple said it was considering its legal options.

It said: “Apple’s teams work tirelessly to create products and services that empower users with industry-leading health, wellness, and safety features. Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers.” 

Apple introduced the blood oximeter in 2020 and Masimo complained that it violated its patents the following year.

Masimo claimed that the two companies had previously discussed working together on the feature but that Apple had ultimately stolen information to build the feature itself. Apple has denied the claims.

Apple is expected to file an appeal on December 26, when the presidential review period on ITC import bans expires. In the meantime, suspending online sales could briefly hit revenues at the end of its crucial Christmas trading period.

Apple does not reveal Apple Watch sales but its accessories division, which includes the smartwatch and other gadgets such as AirPods, sold $9.3 billion (£7.4 billion) worth of products in the last quarter. This was more than its revenue from the iPad or Mac computers.