Apple Races Against Time to Update Apple Watch Software and Avoid Impending Ban in the US!!
Recent Developments in Apple Watch Software Update
Apple is reportedly scrambling to update Apple Watch software to avoid a looming ban. The company is working diligently to make software updates to Apple Watch algorithms that measure blood oxygen levels in order to prevent a potential ban on the smartwatch in the US over a patent dispute [¹^]. It is believed that changing how the Watch measures oxygen saturation could help keep the Watch on shelves during the busy holiday shopping season [¹^].
Implications of Patent Dispute on Apple Watch Sales
Apple has been involved in a patent dispute with Masimo, a California-based company that claims Apple’s blood oxygen sensor infringes on its patents related to light-based blood-oxygen monitoring [¹^]. In October, the International Trade Commission (ITC) upheld a ruling that stated Apple did violate Masimo’s patents [¹^]. This ruling has led to the impending ban on the sale of Apple Watch 9 and Apple Watch Ultra 2 models [¹^].
The case has now entered a 60-day Presidential Review period, which will end next week [¹^]. If President Biden does not veto the ITC’s decision, Apple will be prohibited from selling these two Apple Watch models [¹^]. In anticipation of the ban, Apple has decided to stop selling both models on its website and in retail stores [¹^].
Apple’s Strategies to Mitigate the Impending Ban
One way Apple could potentially keep selling the watch is by settling with Masimo; however, the company’s last-minute race to make software changes suggests that it does not plan to do so [¹^]. Apple intends to submit its software workaround to the ITC for approval [¹^]. Masimo’s CEO, Joe Kiani, has expressed openness to settling with Apple, but so far, Apple has not contacted him [¹^].
Kiani also believes that a software update would not be sufficient to resolve the dispute, as the patents in question are related to the hardware rather than the software [¹^]. This means that overhauling Apple Watch hardware could be a more significant challenge than making software changes [¹^]. Additionally, manufacturing and shipping modified versions of the two Watch models could take several months [¹^].
Ramifications of Impending Ban on Apple’s Business
If the ban on Apple Watch sales goes into effect, it would have significant implications for Apple’s business and revenue [¹^]. The Apple Watch is a key component of Apple’s wearables business, which the company has described as equivalent to a Fortune 500 company [¹^]. The ban would impact Apple’s direct sales channels, including its website and retail stores in the US, but third-party retailers would still be able to sell the Apple Watch [¹^].
The patent dispute and the impending ban highlight the legal and regulatory challenges that Apple faces in the tech industry [²^]. Apple’s ability to navigate these challenges and find a resolution will be critical in maintaining its position in the market [²^]. Meanwhile, the ban also raises questions about Apple’s reliance on overseas suppliers for watch components and assembly [³^].
In conclusion, Apple is racing against time to update Apple Watch software in order to avoid an impending ban on the smartwatch in the US [¹^]. The patent dispute with Masimo has prompted Apple to make urgent software changes to its Watch, although hardware modifications may be necessary [¹^]. The ban, if implemented, would have significant consequences for Apple’s revenue and supply chain [¹^]. As this situation unfolds, Apple will need to navigate legal complexities and find a resolution to mitigate these challenges [²^].
Citations:
- Apple is reportedly scrambling to update Apple Watch software to avoid a looming ban. Engadget. December 18, 2023.
- Apple Scrambles Ahead of Apple Watch Ban in US: Report. Business Insider. December 19, 2023.
- Apple Scrambles To Save $17B Smartwatch Business From Impending Ban: Report — Masimo (NASDAQ:MASI). Benzinga. December 18, 2023.
Reference
1.Apple is reportedly scrambling to update Apple Watch software to avoid a looming ban
2.Apple Scrambles Ahead of Apple Watch Ban in US: Report
3.Apple Scrambles To Save $17B Smartwatch Business From Impending Ban: Report — Masimo (NASDAQ:MASI)
