Apple revealed on Monday that it would temporarily cease sales of its Series 9 and Ultra 2 smartwatches in the US this week due to a patent dispute over the gadgets blood oxygen feature. This decision comes in light of an October ruling by the US International Trade Commission which could prevent Apple from importing Apple Watches. This followed the judgement that the devices infringed on the patent rights of medical technology service provider, Masimo.

This ruling is currently under the discretion of President Joe Biden until December 25, but Apple is taking preventative measures in case the ruling is upheld. The case is also being highly scrutinized by the US Trade Representative office. If not vetoed, the sales block would officially commence on December 26.

The tech giant announced that series 9 and Ultra 2 smartwatches sales would be paused from its online platform starting December 21, and in Apple retail outlets post December 24. Other versions without the contentious blood oxygen sensor, like Apple's cheaper Apple Watch SE model, are not being influenced by the conflict.

Ryan Reith, vice-president of IDC's mobile device research program claims that the holiday season sales will not be jeopardized and that the key impact of the ruling, given that it is validated, would be seen in January and February- traditionally slower sales months for Apple in the USA. Apple has ample stockpile of both Watch 8 and SE models, and will make these products available during this time.

The larger issue of concern is whether or not Apple would be authorised to use the disputed blood oxygen sensor technology on future gadgets, or if a settlement would need to be reached with Masimo or a new solution developed. Being open to a negotiation with Apple, Joe Kiani, Masimo CEO said in an October interview with CNBC.

On Monday, Masimo released a statement stating the ITC ruling should be upheld to preserve intellectual property rights and foster public trust in America's patent system thereby promoting American industry. As per Counterpoint Research, Apple controls roughly 25% of the international smartwatch market - a figure which typically escalates to more than one-third in the Q4 during the holiday seasons in Europe and the US. The Series 9 and Ultra 2 would remain available for purchase outside of the USA, including during Lunar New Year festivities in Asia.

Despite holding a firm belief that the ITC made an inaccurate ruling which should be revoked, Apple has plans to appeal to the Federal Circuit. Apple is apparently working to adjust the algorithms in the smartwatches to discern oxygen saturation levels and to adjust how this data is relayed to users, reported Bloomberg on Monday.