In October, the US International Trade Commission (ITC) issued an order that could prevent Apple from importing its Apple Watches due to a violation of medical technology company Masimo's patent rights. As a result, this recent move has been made by Apple.

Apple has taken measures to abide by the verdict if it upholds, while President Joe Biden is reviewing the decision until Dec. 25. The Office of US Trade Representative responsible for managing this issue in the Biden administration stated that Ambassador Katherine Tai will thoughtfully analyze all details pertaining to this case.

Should it not be vetoed, the ban will take effect on Dec. 26.

Sales of the watches on the company's website will be halted from Dec. 21, while sales in Apple retail stores will cease after Dec. 24 as stated by officials. The disagreement only concerns devices with a blood oxygen sensor and not those without one such as their less expensive model, Apple Watch SE.Sales for other models that do not have a blood oxygen sensor like Apple's budget-friendly option, known as the "Apple Watch SE", remain unaffected by this conflict according to reports provided.

According to Ryan Reith, who serves as the program vice president overseeing mobile device tracking efforts at research firm IDC, US holiday sales of Apple Watches are not expected to be affected by the recent ruling. However, he noted that should the decision stand, its complete impact would likely occur in January and February - two months which tend to record some of Apple's most sluggish sales periods across America.

During that time, Apple will have enough stock of Watch 8 and SE to meet the demand," Reith stated. "However, the more significant issue is regarding whether or not blood oxygen sensor technology can be implemented in future products by Apple with question marks hanging over it. They may need to reach a settlement or find an alternative solution."

During an interview with CNBC in October, Joe Kiani, CEO of Masimo expressed his willingness to negotiate a deal with Apple. On Monday, Masimo released a statement stating that the ITC's ruling should be honored as it safeguards intellectual property rights and fosters public confidence in America's patent system while promoting US industry.

According to Counterpoint Research, Apple holds approximately 25% of the worldwide smartwatch market which usually increases to over one-third during America and Europe's festive season sales in Q4. In addition, both Series 9 and Ultra 2 models will continue to be accessible for consumers outside the US including Asia's Lunar New Year period.

In a statement, Apple expressed its belief that the ITC's determination was flawed and must be overturned. Accordingly, it plans to contest the verdict by appealing it to the Federal Circuit.

On Monday, there was a decline of 0.9% in the closing value of Apple shares.

Apple has been accused by Masimo of poaching its staff, taking its pulse oximetry technology and integrating it into the widely-used Apple Watch.

In May, a jury trial in California federal court regarding Masimo's allegations resulted in a mistrial. Apple has filed its own lawsuit for patent infringement against Masimo in Delaware federal court, and claims that the latter's legal actions are merely an attempt to pave the way for its rival smartwatch product.

Earlier this year, Apple's requests to reconsider the patents in question from the ITC decision were declined by the US Patent and Trademark Office.

According to sources familiar with the project, Bloomberg reported on Monday that engineers working for Apple are altering algorithms in smartwatches. The changes aim to modify how technology measures oxygen saturation and displays related data for users.

According to the report, in case the ban remains intact, Apple is exploring a variety of legal and technical solutions. Furthermore, it has already started getting its stores ready for any changes by sending promotional signage that highlights the Apple Watch but excludes images of Series 9 and Ultra 2 – two models affected by the embargo.

Apple's spokesperson informed Bloomberg that the tech giant is diligently developing a solution to present to administration officials at the US customs agency. These modifications must receive approval in order for Apple to reintroduce its product into the market.

Regarding the Bloomberg report, a Masimo representative informed Reuters that the hardware patents are under consideration. They asserted Apple must modify its hardware while no response has been provided by Apple in this regard upon request for comment.

Although Apple did not provide any statement on Bloomberg's report, they revealed earlier in the day that they were exploring "technical alternatives" to make sure that their customers can still purchase Apple Watches. The company also indicated their commitment to utilizing all possible measures necessary if the ITC decision remains unchanged and retrieving these devices for sale again.

Since President Barack Obama's administration overturned an import ban on Apple's iPhones and iPads from a patent dispute with Samsung back in 2013, no presidential administration has vetoed an ITC ruling.

In February, the Biden administration decided not to veto a ban on importing Apple Watches due to a patent infringement complaint by AliveCor - a medical technology company. However, for different reasons, the ITC has presently suspended the ban.

In the third quarter of 2023, Apple's report indicated that their revenue from wearables, home and accessory products - including the popular Apple Watch and AirPods earbuds - amounted to $8.28 billion.