New developments in Apple Watch infringement case。

Apple did not welcome the "Christmas gift"

In October, the U.S. International Trade Commission (ITC) ruled that Apple had infringed a pulse oximeter patent from medical technology maker Masimo.。As a result, Apple's new Apple Watch Series 9 and Ultra 2, which were launched in September this year, will be banned in the US market.。At the time, the ITC said the case had a 60-day presidential review period in which the White House could step in and decide whether to veto the ban, with the final decision being made by U.S. Trade Representative Katherine Tai.。The review period ends on Christmas Day, December 25.。

But unfortunately, Apple did not usher in this year's "Christmas gift"。

On Tuesday (December 26, local time), the Office of the U.S. Trade Representative said that after careful consultations, U.S. Trade Representative Katherine Tai decided not to revoke the ban, and the ITC's decision became final on December 26, 2023.。

After the White House refused aid, Apple filed an urgent request with the U.S. Court of Appeals for the Federal Circuit to end the ban.。

In a statement on Tuesday, Apple said: "We strongly oppose the ITC's decision and the resulting ban, and are taking all steps to return Apple Watch Series 9 and Apple Watch Ultra 2 to U.S. customers as soon as possible.。"

Apple says it has developed a software update for the Apple Watch that it believes will alleviate the problem.。The company has submitted designs for the updates to U.S. customs agencies, and said in a filing Tuesday that the customs office will decide Jan. 12 whether to approve or reject the updates.。Ruling in Apple's favor could help Apple resume selling the aforementioned watch models。

Apple also wants the court to consider lifting the watch sales ban while it appeals until U.S. Customs and Border Protection decides whether a redesigned version of its watch infringes Masimo's patents.。

The ITC rejected Apple's request to suspend the ban during the appeal process last week and explicitly opposed Apple's request to suspend the ban to the Federal Circuit Court of Appeals in court filings on Tuesday.。

Apple has previously stopped selling the smartwatch in its online stores and U.S. retail stores.。Online sales stopped on December 21, and the last day for offline retail stores to sell these watches was Christmas Eve (December 24)。

However, the ban is aimed at Apple's own sales channels, and other retailers, such as Buy Buy, Target and Walmart, can continue to sell these products until supplies run out.。

Series 9 and Ultra 2 models currently account for the majority of Apple Watch sales。Low-end Apple Watch SE without blood oxygenation still on sale。However, for Apple users who have purchased Apple Watch Series 6, 7 and 8, since these products include blood oxygen functions, out-of-warranty watches will not be eligible for repairs until the ban is lifted。

According to Apple's previously disclosed data, Apple's wearables, home and accessories business, including Apple Watch and AirPods, brought the company 82% in the third quarter of 2023..$800 million in revenue。

Can the ban affect the "dominance" of the Apple Watch?？

Over the years, the global smart watch market, Apple has been in the "market hegemony" position。According to the latest report from Counterpoint Research, in the global smartwatch market in the third quarter of this year, the Apple Watch took the lead with a 22% market share.。

Counterpoint Research data show that in the third quarter of this year, global smart watch shipments increased by 11.1%。Among them, Apple's shipments in the quarter fell 11% year-on-year, and its market share was flat at 22%.。

On September 12, Apple launched the Apple Watch S9 and Ultra 2, and the company's intention to boost sales was obvious。But since the two watches are released at the end of the third quarter, it's important to see how well they boost Apple Watch's performance until the fourth quarter data is out.。

For now, the implementation of the ban may not have a significant impact on the company's holiday season results。Because most people will probably finish shopping before Christmas。And after Apple's advance notice that the ban is about to begin, some consumers may make early purchases。So the impact of the ban on the Apple Watch in the fourth quarter is still small, but it's hard to say next year。

Although the current Apple Watch market share is more than double the second place, but Apple followed by competitors full of potential, such as Huawei。According to Counterpoint Research, Huawei's overall smartwatch shipments increased 56% year-on-year in the third quarter, with HLOS (Advanced Operating System) smartwatches up 122%。Huawei's Watch 4 and 4 Pro series released in the second quarter, as well as the Watch GT 4 released in the third quarter, have high popularity。Separately, Indian brand Fire-Boltt also recorded significant growth in the third quarter and recorded its highest quarterly shipment on record.。

In the third quarter, Fire-Boltt and Huawei ranked second and third in market share。

However, Apple's ban is in effect in the U.S. market, while Huawei and Fire-Boltt have achieved most of their growth in their home markets and will have less impact on Apple。Apple is more "afraid" of competitors that have a small market share in the U.S. market, such as Samsung。Samsung's smartwatch shipments recorded double-digit declines in both the second and third quarters of this year。Now "God-given opportunity," Apple's new watch is banned, Samsung can cannibalize Apple's share, it depends on his skill.。