The White House is closely monitoring a potential ban on Apple Inc.’s Apple Watch sales due to a patent infringement dispute with Masimo Corp. The Joe Biden administration is actively tracking the case, as reported by Bloomberg.
The ban, if implemented, would affect the Apple Watch Ultra 2 and Apple Watch Series 9, which have been popular among consumers. These smartwatches risk being banned from import into the U.S. or sold by Apple.
The International Trade Commission has found that these watches violated patents owned by Masimo related to blood oxygen sensing.
The power to lift the ban lies with the U.S. Trade Representative Katherine Tai, who is carefully considering all factors in the case, according to White House press secretary Karine Jean-Pierre.
The deadline to finalize changes to the import ban is December 25. However, the White House does not intend to preempt any decisions made by the trade agency.
Although the U.S. President has the authority to intervene in import bans, such instances are rare. The last intervention occurred in 2013 when then-President Barack Obama stopped a ban on certain iPhone and iPad models due to Apple’s trade dispute with Samsung Electronics Co.
The potential ban holds significant importance as Apple has been strategizing to protect its $17 billion smartwatch business. The company has reportedly been modifying algorithms that measure blood oxygen levels, a feature that Masimo Corp. alleges infringes its patents.
Despite the threat of the ban, industry experts suggest that the financial impact on Apple may not be as significant as initially anticipated. Analysts from JPMorgan, Samik Chatterjee and Joseph Cardoso, believe that the pause in sales of the two Apple Watch models in the U.S. is unlikely to significantly affect Apple’s revenue.
In conclusion, the White House is closely monitoring the potential ban on Apple Watch sales due to a patent infringement dispute. While the outcome remains uncertain, industry experts believe that the financial impact on Apple may not be as severe as initially feared. The deadline to finalize changes to the import ban is approaching, and all eyes are on U.S. Trade Representative Katherine Tai to make a decision.
