The latest Apple Watch, embroiled in a patent dispute, has been suspended from sale in the United States. This comes in the aftermath of a ruling stating that it violated the patent for the blood oxygen level sensor developed by Masimo. Facing the risk of missing the year-end market, as well as the fact that healthcare functions are emerging as a crucial feature in the competition for smartwatches, Apple’s device strategy is inevitably expected to take a hit. On the other hand, Samsung Electronics, which is adding numerous healthcare features to the Galaxy Watch, has seized an opportunity
According to Bloomberg and Reuters on the 18th (local time), Apple announced that it would stop online sales of the ‘Apple Watch Series 9’ and ‘Apple Watch Ultra 2’ from the 21st. Devices distributed to frontline stores will also not be sold from Christmas Eve.
This is in response to the decision by the U.S. International Trade Commission (ITC) in October. In a patent lawsuit filed by the medical technology company Masimo in 2021, the ITC ruled in favor of Masimo. Masimo holds a patent for measuring blood oxygen saturation, and it claimed that the oxygen saturation monitor implemented in Apple Watches released since 2020 infringed on its technology. Despite initial collaboration efforts starting in 2013, Apple and Masimo have been involved in a long-standing legal dispute, with Masimo alleging that Apple, after considering an acquisition, reversed its decision and misappropriated technology and employees.
The ITC ruling is pending President Joe Biden’s final review, with a deadline of the 25th. However, Apple has taken preemptive action, although it does not mean they accept the ruling. Apple is preparing an appeal while continuing to sell devices without the blood oxygen saturation measurement feature, such as the Apple Watch SE series.
Apple has faced patent infringement issues in the past, but this dispute involves a U.S. company, Masimo, making the situation different. Bloomberg reported, ‘When Apple lost in the ITC patent dispute with Samsung Electronics in the past, President Barack Obama overturned the ban. However, since Masimo is a U.S. company, there is no precedent for forcing Apple to cease selling core products in the United States.’
As hurdles arise for the sale of Apple’s latest devices, Samsung Electronics, a competitor in the smartwatch market, seizes an opportunity. Samsung offers various health-related features, including blood oxygen saturation, blood pressure, heart rate, body composition, sleep, menstrual cycle tracking, and electrocardiogram measurement, in its latest smartwatches, such as the Galaxy Watch 6. Market research firm TrendForce predicts global smartwatch shipments to reach 130 million units in 2023, with estimated market shares for Apple and Samsung remaining at 32% and 10%, respectively, the same as the previous year.
By. Min Hyuk Yoon
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