In the United States, a court has ruled that Apple must immediately stop selling its new Apple Watches. An oxygen meter on the watches violates a patent held by another company. The tech giant has no option but to offer the smartwatches in the U.S. without the tech gadget.
The financial implications for Apple, which now has to produce two sets of watches, could be serious. This negative decision comes amid a spate of setbacks for the company, which saw the value of its shares plummet.
In related news, Apple must sell its latest Series 9 and Ultra 2 watches in the US without the planned meter that measures the oxygen in your blood.
The US International Trade Commission (USITC) was clear in November: Apple's new measurement device infringes on a patent held by health technology company Masimo.
A pulse oximeter allows you to check the level of oxygen in your blood, a technology Masimo had refined in its watch. Apples version of such a watch hit the market in 2020. Masimo had already filed the patent for the oxygen meter, accusing Apple of stealing his technology.
Apple countered that Masimo's watch, the M1, was not on the market then. It is also sold in smaller editions, so Masimo cannot speak of a competing product jeopardizing its market position, the tech giant said.
The USITS does not follow Apple's defense, strictly adhering to the paperwork. Apple is also not granted a stay. The new watches with oxygen monitors must be taken off the market immediately.
The company had already anticipated this, stopping sales of watches with oxygen meters before Christmas. It will release new watches without the gadget starting Wednesday.
This applies only to the United States, by the way. Apple reports that the feature will remain present on watches sold outside the US. It will also appeal the USITC's decision.
Biggest or not?
The Bigger Picture: Why this does strike a blow for Apple.
So few problems for Belgian consumers, but for Apple. It faces a challenge to sell its products. Apple's wearables division, including watches, accounts for 10 percent of all revenues, or about $40 billion.
Apple and Microsoft's value estimates are doing leapfrog. On Tuesday, Microsoft was suddenly the most valuable company in the world, in part because it is betting on artificial intelligence. Apple's position as number one was never seriously threatened before.
But now the company must take hits. Its market value is estimated lower now that stock market specialists expect the new iPhone 16 to have difficulty finding a market. Especially the Chinese market would not be waiting for Apple.
On the other hand, Apple was the best-selling smartphone brand last year, ahead of Samsung. China's Huawei is also re-emerging, after years of trade blockades by the Americans.
Noted: Masimo's stock rebounds.
Masimo may actually benefit again. The stock climbed 2.1 percent to $122.57.
By the way, the company thinks Apple is complaining unfairly. The multinational had three years to anticipate, it sounds. CEO Joe Kiani called the USITC's decision "a victory for the U.S. patent system."
Apple Inc. specializes in the design, manufacture and marketing of computer hardware and music supports. Net sales break down by family of products and services as follows:
- telephone products (52.1%): iPhone brand;
- peripheral devices (10.5%): screens, storage systems, printers, video camera, memory cards, server, switches, etc.;
- computers (10.2%): laptops (MacBook, MacBook Air and MacBook Pro brands) and PCs (iMac, Mac mini, Mac Pro and Xserve);
- music support (7.4%): music readers iPod and iPad and accessories;
- other (19.8%): software, maintenance service and Internet access service, etc.
Net sales are distributed geographically as follows: Americas (42.4%), China/Hong Kong/Taiwan (18.9%), Japan (6.3%), Asia/Pacific (7.7%) and Europe/India/Middle East/Africa (24.7%).
APPLE INC. 
