Apple stunned customers today by announcing it will pull its latest Apple Watch models from shelves later this week to comply with a U.S. import ban tied to an ongoing patent dispute. The move leaves holiday shoppers scrambling and casts uncertainty over the availability of Apple’s leading wearable device heading into 2023.

After 3 p.m. ET on Thursday, December 21st, the company confirmed that the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available for purchase from Apple or authorized resellers. The ban also impacts the final delivery and pickup dates from Apple retail stores, which are now set for December 24th.

Behind the dramatic decision is a bitter legal fight with medical device maker Masimo over patented pulse oximetry technology (SpO2 sensor) used in Apple Watch to measure blood oxygen levels. Apple is essentially instituting a preemptive sales ban on its premier smartwatch offerings this holiday season while it fights the import prohibition in courts and through regulatory appeals.

The import battle that threatens Apple Watch availability

Masimo, a pioneer in non-invasive patient monitoring, set its sights on Apple in 2020 by filing a pair of lawsuits alleging Apple stole its trade secrets and infringed on patents related to pulse oximetry, which uses light sensors to gauge oxygen saturation in the blood. Apple has utilized the technology since adding a SpO2 app on the Apple Watch Series 6 in 2020 for general wellness purposes.

One Masimo lawsuit played out in federal court in California, while a second fought at the U.S. International Trade Commission carried higher stakes because it could result in import bans on infringing products. Apple may have already taken compliance actions if not for the ITC case still winding through a lengthy review process and facing additional appeals.

That changed last week when the ITC made a surprise preliminary ruling that Apple infringed on Masimo patents and said it would impose an import ban on Series 8 and later models equipped with the SpO2 feature. Apple maintains it did nothing wrong and panned the initial ITC decision, but still opted to immediately clear inventory of the Series 9 and Ultra 2 – its most premium offerings – rather than risk a disruption in sales once the ban formally takes effect after December 21st.

“We strongly disagree with the ITC’s preliminary conclusions and intend to appeal,” Apple said in a statement. “Apple Watch has helped save countless lives by empowering users to stay connected to their health.”

Other models like the Apple Watch SE lacking SpO2 sensors can still be purchased without limitations. Earlier generations of Apple Watch will also remain on shelves, though with compromised capabilities versus Apple’s latest devices.

Apple mounts counter-offensive to restore watch availability

While Apple complies with the import prohibition for now, its statement signals that it isn’t giving up the fight and intends to exhaust every avenue to eventually overturn the ban.

Apple can request a full ITC review in hopes commissioners overrule last week’s initial determination. From there, any final decision goes to President Biden, who has the power to veto import bans based on public policy reasons. Apple benefited from one such veto in 2013 when the Obama administration overturned an ITC order banning iPhones and iPads in a dispute with Samsung.

Apple is also working on software updates to adjust how blood oxygen measurements work on Apple Watch to design around Masimo patents, according to a Bloomberg report. The company could then argue that it skirted violation of intellectual property related to notifications and readings. This workaround may represent Apple’s best shot at restoring access to its premier watches without months or years of ongoing appeals.

The next milestone comes December 25th when Biden must sign off on ITC import bans or veto them before they take effect 60 days later. This review period introduces a window where the administration could step in on Apple’s behalf.

Until then, Apple Watch Series 9 and Ultra 2 will remain prohibited from store shelves and delivery trucks through at least the busy holiday season. Customers seeking the latest Apple Watch technology for gifts or personal use are left scrambling towards other models, seeking alternative wearables from other brands, or crossing their fingers for a last-minute holiday miracle in Apple’s intensifying courtroom and regulatory battles.