Cupertino, Calif. – Apple (AAPL) shares experienced a more than 1% decline, followed by a slight rebound, on Monday after the company announced its decision to stop the sales of its Apple Watch Series 9 and Apple Watch Ultra 2 in the upcoming days. The watches will be removed from Apple’s online stores by Dec. 21 and from physical stores by Dec. 24. This decision was made after the International Trade Commission (ITC) granted medical device maker Masimo (MASI) cease-and-desist and limited exclusion orders, preventing Apple from importing and selling the Series 9 and Ultra 2 in the US in October.
The review period will end on Dec. 25. Apple aims to ensure compliance with the orders if the White House does not come to the company’s aid.
“Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers,” the company stated. “Should the order stand, Apple will continue to take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as soon as possible.”
The disagreement is regarding a patent dispute between Apple and Masimo over whether Apple unfairly used Masimo’s blood oxygen sensor technology in its devices. The ITC found in favor of Masimo on some claims and against the company on others, resulting in the decision for Apple to either pull the watches, appeal the orders after the review period or reach a settlement with Masimo.
The ban only applies to sales of the Apple Watch Series 9 and Ultra 2 sold directly through Apple. However, Apple will still be able to import and sell the Apple Watch SE. The Apple Watch line is one of Apple’s most successful accessories, contributing to its wearables, home, and accessories business, which brought in $39.8 billion in revenue in the company’s fiscal 2023.
As of Q3 2023, the Apple Watch is the world’s best-selling smartwatch, capturing 22% of global market share, according to Counterpoint Research. India’s Fire-Boltt and China’s Huawei make up the second and third best-selling watch companies, capturing 10% and 9% of the market, respectively.