Apple
shares traded lower Monday after the company said it would stop selling two versions of its smartwatch in the United States.
Apple’s
announcement comes after the U.S. International Trade Commission found earlier this year that Apple violated patents held by medical technology company
Masimo.
The ruling concerns a blood oxygen feature on certain models of the Apple Watch. The company told Barron’s the ruling is currently under a presidential review period.
“While the review period will not end until December 25, Apple is preemptively taking steps to comply should the ruling stand,” the company said. “This includes pausing sales of Apple Watch Series 9 and Apple Watch Ultra 2 from Apple.com starting December 21, and from Apple retail locations after December 24.”
If the order stands, the company said it would take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S. as soon as possible. Customers can still purchase both models outside of the country.
For its latest fiscal year, the company reported Apple Watch sales of $19.6 billion, or about 5% of total revenue of $383 billion, according to Visible Alpha.
Apple shares were down 0.7% to $196.20 on Monday. The stock has risen 50% this year.
Write to Emily Dattilo at [email protected]
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