In possibly the first public confirmation, Apple Inc. AAPL CEO Tim Cook has said that the company plans to appeal the ban on its Apple Watch, resulting from a patent dispute with Masimo Corp. MASI.
What Happened: Despite the ongoing legal wrangling with Masimo, Apple continues to sell its Apple Watch Series 9 and Ultra 2 in the U.S., albeit with the contested blood oxygen feature disabled.
In the interview with CNBC, which followed the release of Apple’s fiscal Q1 2024 earnings, Cook said that the company has no intention of licensing Masimo’s technology to resolve the issue, reported AppleInsider.
“We’re focused on appeal,” said Cook in a statement, according to the report. “There’s lots of reasons to buy the watch even without the blood oxygen sensor.”
The Apple Watch Series 9 and Ultra 2 were temporarily removed from Apple’s website and retail stores in December. Despite this, Apple’s Wearables, Home, and Accessories category reported $11.95 billion in revenue for fiscal Q1 2024, surpassing expectations.
Masimo CEO Joe Kiani has previously expressed that Apple has not engaged in “serious discussions about a settlement.” He has indicated that Masimo is open to a settlement, but it requires mutual agreement.
During an interview with Bloomberg in December, Kiani said, "They haven't called," adding, "It takes two to tango."
Why It Matters: The ongoing dispute between Apple and Masimo has been a significant point of contention. In December last year, the International Trade Commission denied Apple’s request to delay a sales ban on certain Apple Watch models.
The dispute and subsequent ban have not significantly impacted Apple’s sales, with the company reporting higher than expected revenue for its Wearables, Home, and Accessories category in Q1 2024.
The Apple Watch Series 9 and Ultra 2, with the blood oxygen feature, continue to be available for purchase from third-party retailers like Best Buy and Amazon.
Photo courtesy: Apple
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