According to Bloomberg, Apple engineers are "racing" to modify the blood oxygen sensor in the Apple Watch's algorithms in order to prevent having to stop selling the device. Due to an impending import ban resulting from a patent dispute with medical device company Masimo, Apple announced earlier today that it will cease selling the Apple Watch Series 9 and Apple Watch Ultra 2 in the United States as of December 21.
According to sources who spoke with Bloomberg, engineers are changing how oxygen saturation is calculated and how customers receive the data; these changes are likely to remove technology that is thought to be infringing on Masimo patents. According to Apple, it is "pursuing a range of legal and technical options" to ensure that Apple Watch sales can resume as soon as possible, and this work is in line with that statement.
Masimo thinks that a software update won't be sufficient to resolve the patent infringements because his patents pertain to the hardware that drives the blood oxygen sensor in the Apple Watch. According to Masimo, "the hardware needs to change," Bloomberg reported.
Apple appears to believe that a software-based solution will be adequate, as a representative for the company told Bloomberg that it is working on submitting a workaround. Given that Apple will need to test the changes, it is unlikely that a software fix will be released prior to the end of sales. Updates to the hardware would take at least a few months.