Apple Watch Sales Suspension is Going to Hurt

Apple announced it will suspend sales of two Apple Watch models this week, pending resolution of a patent dispute. Based on our analysis of recent Watch sales, this suspension will reduce Watch sales significantly, both in the short-term and also (potentially, though unlikely) in the long-term.

Apple actually faces an import ban based on violating patents for the pulse oximeter feature in Apple Watch Series 9 and Ultra 2 models. The SE and Nike models do not have the feature, and thus can continue to sell.

The two models, or model families, affected account for about 80% of Apple Watch sales in the US (Chart 1).