Apple to halt sales of its newest watches in US over patent dispute

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Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. stem from (something) / stɛm frəm / (phrasal v.) – to start or develop because of something
    Example:

    The tension between the two colleagues stems from a misunderstanding that occurred during a team project.


  2. dispute / dɪˈspyut / (n.) – a disagreement or argument
    Example:

    The two neighbors are engaged in a bitter dispute over the property boundaries.


  3. suspension / səˈspɛn ʃən / (n.) – the act of stopping or delaying something from happening or operating
    Example:

    Joe’s driver’s license was under suspension because he broke many traffic rules.


  4. record high / ˈrɛk ərd haɪ / (n.) – the highest point or level that something/someone has reached or achieved
    Example:

    It was the hottest day ever recorded, with temperatures reaching a record high of 40°C.


  5. overturn / ˌoʊ vərˈtɜrn / (v.) – to change a ruling or a decision, especially in a legal setting
    Example:

    The Supreme Court overturned a controversial law that had been in place for many years.


Article

Read the text below.

Apple suspended sales of the Series 9 and Ultra 2 versions of its popular watch for online U.S. customers on the afternoon of December 21 and in its stores on December 24. The move stems from an October decision by the International Trade Commission (ITC) restricting Apple’s watches with the Blood Oxygen measurement feature as part of an intellectual property dispute with medical technology company Masimo.


The White House had 60 days to review the ITC order issued on October 26, meaning Apple could have kept selling the two affected models in the U.S. through Christmas. But the Cupertino, California, company said in a statement that it is pausing sales early to ensure it complies with the ITC order.


The disruption likely cost Apple about $300-400 million in holiday-season sales, estimated Wedbush Securities analyst Dan Ives. That was a relative drop in the bucket for Apple, given analysts expected Apple to have generated nearly $120 billion in sales during the October-December period that included the holiday shopping season.


The sales suspension on the two Apple Watch models “doesn’t move the needle much for the company, but still, it couldn’t have come at a worse possible time,” Ives said.


Apple’s stock so far hasn’t been significantly affected by the announced sales suspension on the two watch models, leaving the shares near their record high reached in December.


If the ITC’s sales ban isn’t overturned, Apple pledged to “take all measures” to resume sales of the Series 9 and Ultra 2 models in the U.S. as soon as possible.


The Apple Watch SE, which lacks the Blood Oxygen feature, has remained on sale in the U.S. after Christmas Eve. Previously purchased Apple Watches equipped with Blood Oxygen aren’t affected by the ITC order.


The patent headaches facing Apple as it tries to infuse more medical technology into its watch models make it increasingly likely the company will either have to start working out licensing deals or simply acquire startups specializing in the field, Ives predicted.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Do you think that this intellectual property dispute with Masimo would affect Apple’s reputation or the consumer’s perception of the brand? Why or why not? Discuss.
  • As a consumer, would you still buy Apple products despite it facing disputes such as this? Why or why not? Discuss.

Discussion B

  • Apple tries to infuse more medical technology into its products, specifically its watch models. How do you think this will benefit you (ex. it will encourage me to be healthier, no benefit at all)? Discuss.
  • If you were to customize your smartwatch’s features, what features would you like it to have (ex. tracker, music)? Why? Discuss.