Apple's smartwatches have been leading in the market for a while now due to the features it can offer. However, one of those functions may have already been patented by a different company. Despite appeals, Apple lost and was forced to take more drastic steps.
No Apple Smartwatches for 2024
The tech giant has no choice but to temporarily take the newer versions of its smartwatches off the shelves after losing a dispute with Masimo. The latter company claims that several of its patents have been infringed, and the International Trade Commission agrees.
Masimo's tech in question, one that can detect the pulse rate of an individual, can be found in several Apple watches including the Apple Watch Series 9 and Watch Ultra 2. The pause in sales follows the decision that the court made two months ago over the patented tech.
On the bright side, the pause would take place after Christmas, so consumers would still be able to purchase them as holiday gifts or for themselves, and it would not impact Apple's revenue that much.
According to reports, the company's Apple Watch accounts make up almost $20 billion of its $383.29 billion in annual sales. With the ruling, the sales might affect the outcome for 2024, depending on how long the sale halt will be.
It was mentioned by the medical technology company based in Irvine, California, that Apple poached its top executives and several other employees before it released watches with pulse oximeter functions, as reported by The New York Times.
In all fairness, Apple was given two months to make amends and create a fair deal with Masimo for a proper license. The other option would be to appeal the court's ruling by having the Biden Administration reverse it. Obviously, the iPhone maker chose the latter.
Masimo CEO Joe Kiani said that Apple did not try to reach out for licensing negotiations. The medical tech company learned about Apple's decision after the administration contacted Masimo about the request of the tech giant.
Kiani said that they were willing to sell Apple a chip that was designed by the company to provide pulse oximeter readings, even working with the iPhone maker to make the product good enough for them to license.
Apple is Dealing With Another Problem
The future loss of revenue from Apple smartwatches just adds to the fees that Apple has to pay. Recently, the company also lost a class action suit over its Family Sharing feature, which led to Apple having to pay $25 million in settlement fees.
The lawsuit stated that the company misinterpreted "the ability to use its Family Sharing feature to share subscriptions to apps." Select people will be eligible for a payout, although it could only be between $30 to $50 as $10 million of the settlement amount will go to legal fees.
As mentioned in Tech Crunch, the company giant decided to settle instead of prolonging the case and costing them more in the process, calling it "burdensome and expensive." Apple still does not admit to any wrongdoing whatsoever.
