Apple has stated that sales of its Series 9 and Ultra 2 smartwatches in the United States will be suspended beginning this week. The move is the consequence of a patent battle with Masimo Corp, a health-tech startup, over a critical aspect of these watches: blood oxygen monitoring technology.

The US International Trade Commission (ITC) decided in favor of Masimo in January 2023, stating that Apple violated Masimo's rights in the specific light-based technology used for detecting blood oxygen levels. As a result, the ITC has issued an import restriction on some Apple Watch models, hurting Apple's sales in the US market directly. This move affects not only Apple, but also its global network of component manufacturers and assembly providers.

The Impact on the Indian Market

The immediate impact of the US embargo on Indian consumers is negligible. Apple Watch sales and availability in India remain unchanged. The Apple Watch Ultra 2 and Watch Series 9 are still available. The larger ramifications of this restriction on Apple's activities in other countries, including India, remain unknown. The devices under consideration

The financial Ramifications

The move comes at a critical time in Apple's financial history, since its wearables division produced significant revenue - $13.48 billion - in the first quarter of 2023. This revenue source is especially noticeable during the holiday season.

The Effect on US Consumers

There are no restrictions on the usage of impacted models for those who acquired them before the ban's adoption, even in the United States. Apple's warranty services remain operational, ensuring that devices still covered by the warranty can be serviced.

Repair

According to Bloomberg, Apple's customer care workers recently received a memo suggesting that the company will halt the replacement of out-of-warranty units beginning with the Apple Watch Series 6. Customers with difficulties such as a damaged screen will no longer be able to have their watches repaired by Apple. Apple will, however, continue to provide software-related support, such as operating system reinstallation.

Company personnel have been directed to notify impacted consumers that hardware replacements will be permitted once again. Before the prohibition, Apple routinely replaced watches with hardware defects because the majority of them could not be repaired.

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.