via Apple
Apple lost its appeal to the International Trade Commission (ITC), and could no longer sell the Apple Watch Series 9 or Ultra 2. However, thanks to a ruling from the U.S. Customs and Border Protection, they had a last resort: disabling the Blood Oxygen feature. With it disabled, Apple may continue selling their watches, just without features other smartwatch makers have.
Can Apple compete with a watch that has fewer features than the competitors, with a premium price already higher than their competitors? For that matter, how can Apple justify the same price for a watch that is missing an important feature that has become a staple of fitness tracking devices? Perhaps they hope such a measure is only temporary.
Apple’s Backup Plan
If you already have an Apple Watch, you have nothing to worry about. If your Apple Watch is an Apple Watch 6 or newer, or an Ultra 1 or Ultra 2, it will still feature blood oxygen sensing. Apple’s new firmware that disables the feature will only exist on new Apple Watches.
People who buy the Apple Watch Series 9 or Apple Watch Ultra 2 in the United States will still see the Blood Oxygen app on their devices. However, selecting it will give them a message: “The Blood Oxygen app is no longer available. Learn more in the Health app on your iPhone.” Apple updated their support website on how to use the Blood Oxygen app on the Apple Watch, and included a new note pointing out that the Apple Watch sold in the United States will have “some restrictions.” If you look into their link explaining it further, you’ll see those “restrictions” completely block the feature.
via Apple
It seems Apple’s priority here is to enable the feature again as soon as possible. They have a few ways they could try this. The first, and most obvious, is an appeal. Apple is still trying to overturn the decision against them. Next, they could try to create a new way to get blood oxygen readings from the same sensor. This is unlikely, as Masimo has stated that Apple has a hardware problem. Finally, Apple could license the technology from Masimo. This would entail paying Masimo a little bit for each Apple Watch sold, or perhaps a lump sum payment. Either way, Apple will profit less from the Apple Watch. However, as they’ll likely sell fewer Apple Watches, as they now have fewer features than their competitors—but cost more—they’ll likely want to get all of their features back on the Apple Watch in what is likely their most lucrative market.
Apple has a higher density of iOS users in the U.S. than elsewhere in the world, and iOS users are more likely to want Apple Watches than Android users, who can’t make use of the features anyway. Apple needs the U.S. for their watches to be successful in any capacity. It’s a core part of the Apple ecosystem, which leads to higher customer return rates. Every piece of Apple’s puzzle is vital to its success.
You can buy the more limited Apple Watch now, on Apple’s website or in-person, starting at $399.
Sources:
- Wesley Hilliard, AppleInsider
- Chance Miller, 9to5Mac
- Mariella Moon, Engadget