Recently Apple has decided to stop selling two of its latest Apple Watches - Series 9 and Ultra 2 - in the US in this week which could cost hundreds of millions of dollars, the media reports stated.
As stated by Dan Ives, analyst at Wedbush Securities - if Apple Inc. moves ahead with its plan to stop selling the two smartwatches, then the decision will majorly cost around USD 300 - USD 400 million in holiday - season sales, the report stated.
That's a drop as analysts are expecting Apple to generate close to USD 120 billion in sales during the last quarter (October-December period), including 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.
The report further said, that Apple's stock has not been affected by the sales suspension on the two watch models, remaining near its record high.
A representative for Apple was quoted as stating, "Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers.”
He further added, "Should the order stand, Apple will continue to take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as soon as possible.”
Why did Apple decide to stop selling it’s smartwatch
Apple's decision to stop the sales surfaced when a recent ruling by the International Trade Commission (ITC), as part of a long-running patent was disputed between Apple and medical technology company Masimo around the Watch’s blood oxygen sensor (SpO2 sensor) technology.
The company further said that the preemptively complied with an ITC import ban following the patent dispute.
The ITC announced its ruling in October, upholding a judge’s decision from January.
Masimo, which has been known for its pulse oximeter, filed two separate cases, which claimed that Apple has infringed on its pulse oximetry technology.
Both the newly-launched Apple Watches will no longer be available to purchase online from December 21, reports 9to5Mac. In-store inventory will no longer be available at retail stores after December 24.
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Inputs from IANS
