Apple has announced a suspension of its Series 9 and Ultra 2 smartwatch sales in the United States, effective this week. The move results from a patent dispute with a health-tech company called Masimo Corp, which centres on a crucial feature of these watches: the blood oxygen monitoring technology.

In January 2023, the US International Trade Commission (ITC) ruled in favour of Masimo, finding that Apple infringed upon Masimo’s rights in the specific light-based technology used for reading blood oxygen levels. Consequently, the ITC has imposed an import ban on these Apple Watch models, directly affecting Apple’s sales in the US market. This decision impacts not only Apple but also its network of international suppliers responsible for component manufacturing and assembly.

Impact on Indian market
For Indian consumers, the immediate effect of the US ban is minimal. The sales and availability of Apple Watches in India remain unchanged. The Apple Watch Ultra 2 and the Watch Series 9 continue to remain on sale. However, the broader implications of this ban on Apple’s operations in other countries, including India, are yet to be determined. The gadgets in the purview 

Financial implications
The decision comes at a significant financial juncture for Apple, as its wearables business generated considerable revenue – $13.48 billion – in the first quarter of 2023. This revenue stream is particularly notable during the holiday season.

Impact on consumers in US

For those who have already purchased the affected models before the ban’s implementation, even in the US, there is no restriction on their use. Apple’s warranty services continue to operate normally, ensuring that devices within the warranty period can still receive servicing.

Repair
According to a report by Bloomberg, in a recent development, Apple’s customer service teams received a memo stating that the company will discontinue the replacement of out-of-warranty models, starting from the Apple Watch Series 6. This implies that customers with issues like a broken screen will no longer be able to have their watches repaired by Apple. However, Apple will continue to provide software-related assistance, such as operating system reinstallation.

Company representatives have been instructed to inform affected customers that they will be notified when hardware replacements are permitted again. Prior to the ban, Apple typically replaced watches with hardware issues, as most could not be fixed.

This decision to halt watch replacements impacts a majority of the new Apple Watches sold since 2020. This includes the Series 6, 7, 8, and Ultra models, as well as the current Series 9 and Ultra 2. All these models possess the blood oxygen feature, which the commission has ruled is covered by the patents.

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