Apple Inc.'s iPhone 8, Airpods and Apple Watch lie on the AirPower charger during an event at the Steve Jobs Theater in Cupertino, California, U.S., Tuesday, September 12, 2017.
David Paul Morris | Bloomberg | Getty Images
Apple will remove the blood oxygen feature from its latest Apple Watches, a move that will allow the company to continue importing and selling the devices in the US while it battles Masimo in court.
Modified versions of the Apple Watch Series 9 and Ultra 2 will go on sale Thursday, Apple said in a statement. Both devices were introduced in September.
When a user taps the blood oxygen icon on a modified watch, an alert appears on the display, directing the user to an explanation on Apple's website, the company said.
Apple has been embroiled in an intellectual property dispute with Masimo, a medical device maker, for months. In October, the International Trade Commission found that Apple's watch blood oxygen sensors had infringed Masimo's patents.
The affected watches were briefly banned in December before Apple received a temporary reprieve. But on Wednesday, an appeals court overturned an injunction that had prevented the ban from taking effect. The court did not overturn the ITC decision, which is currently under appeal.
It is unusual for Apple to remove features from released products. The lack of the blood oxygen sensor could make the device less attractive to some consumers.
“Pending appeal, Apple is taking steps to comply with the ruling while ensuring customers have access to Apple Watch with limited interruptions,” an Apple spokesperson told CNBC. “These steps include introducing a version of the Apple Watch Series 9 and Apple Watch Ultra 2 in the US without the blood oxygen feature. There is no impact on previously purchased Apple Watch devices that have the blood oxygen feature.”
Apple said it hopes the appeals court will eventually overturn the decision and the unmodified watches will return to store shelves, but that could take over a year.
In fiscal 2023, Apple reported $39.8 billion in wearables sales, which include headphones.
REGARD: Apple has again banned the sale of watches with blood oxygen sensors in the USA