The White House did not lift the ban on the sale of Apple smartwatches in the United States market.
Against the background of the mentioned decision, the specified technology giant announced its intention to seek help from the federal court. This aspiration of the company is logical since sales of smartwatches had a significant share in the overall structure of its revenues.
International Trade Commission (ITC) of the United States in October found that Apple violated two Masimo patents for medical technology of a blood oxygen sensor in the watch. The White House had 60 days to review the import ban. The decision in this case rests with the US Trade Representative Catherine Tai.
The ITC won this case. In a statement from the Office of the US Trade Representative, released on Tuesday, December 26, it is reported that Catherine Tai decided not to lift the import ban.
A few hours after it became known that Apple’s smartwatches would not return to sale, the technology giant announced its intention to challenge the ITC decision in the US Court of Appeals for the Federal Circuit. The brand has also filed an emergency motion to lift the import ban while the court considers the appeal.
An Apple spokeswoman said the company strongly disagrees with the ITC’s decision and the resulting exclusion order. Special attention was paid to the fact that the technology giant is taking all measures to return the smartwatches Watch Series 9 and Watch Ultra 2 to American customers as soon as possible.
Apple has stopped selling the mentioned models of devices in its online store and retail outlets in the United States. The media, citing analyst data, report that in the last financial year, the technology giant earned about $17 billion as a result of the sale of smartwatches. Banning the presence of these devices on the market could potentially cause significant damage to the company.
The price of Apple shares in New York hardly reacted to the news about smartwatches and the company’s intentions to return these products for sale.
The tech giant, based in Cupertino, California, equipped the mentioned devices with a blood oxygen sensor in 2020. The manufacturer of medical equipment Masimo stated that the corresponding technology is its invention and accused Apple of patent infringement and poaching employees. The ITC considered the claims against the tech giant to be justified.
Health tracking features have become a major factor in Apple Watch sales. The technology giant competed with manufacturers of medical devices.
The Series 9 and Ultra 2 models are a kind of Apple Watch sales base. The company does not disclose how much revenue it generates from these devices, which are the main part of the business of manufacturing wearables, home goods, and accessories, with total financial sales of more than $40 billion per year.
The US president has the authority to lift import bans, but such actions by the head of state are rare.
The Apple Watch SE, which is not equipped with a blood oxygen sensor, remained on sale, but this device is not the main player in the line of the corresponding products of the brand.
The tech giant is currently going through some tough times. The company has faced a drop in sales and is trying to overcome these difficulties, but efforts in this direction will be significantly complicated due to restrictions on smartwatches of the Series 9 and Ultra 2 models. Ahead of the holiday season, the tech giant’s revenue showed a decline for four consecutive quarters, which is the longest downturn in the last two decades.
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