Menu
Apple to fork out up to U.S.$500M to settle lawsuit over slow iPhones

Apple to fork out up to U.S.$500M to settle lawsuit over slow iPhones

Apple denied wrongdoing and settled the nationwide case to avoid the burdens and costs of litigation, court papers show

Credit: Reuters

Apple has agreed to pay up to U.S.$500 million to settle litigation accusing it of quietly slowing down older iPhones as it launched new models, to induce owners to buy replacement phones or batteries.

The preliminary proposed class-action settlement was disclosed on Friday night and requires approval by U.S. District Judge Edward Davila in San Jose, California.

It calls for Apple to pay consumers U.S.$25 per iPhone, which may be adjusted up or down depending on how many iPhones are eligible, with a minimum total payout of U.S.$310 million.

Apple denied wrongdoing and settled the nationwide case to avoid the burdens and costs of litigation, court papers show.

The Cupertino, California-based company did not immediately respond on Monday to requests for comment.

Friday's settlement covers U.S. owners of the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7Plus or SE that ran the iOS 10.2.1 or later operating system. It also covers U.S. owners of the iPhone 7 and 7 Plus that ran iOS 11.2 or later before Dec. 21, 2017.

Consumers contended that their phones' performance suffered after they installed Apple software updates. They said this misled them into believing their phones were near the end of their lifecycles, requiring replacements or new batteries.

Apple attributed the problems mainly to temperature changes, high usage and other issues, and said its engineers worked quickly and successfully to address them. Analysts sometimes refer to the slowing of iPhones as "throttling."

Lawyers for the consumers described the settlement as "fair, reasonable, and adequate."

They called payments of U.S.$25 per iPhone "considerable by any degree," saying their damages expert considered U.S.$46 per iPhone the maximum possible.

The lawyers plan to seek up to U.S.$93 million, equal to 30 per cent of $310 million, in legal fees, plus up to U.S.$1.5 million for expenses.

Following an initial outcry over slow iPhones, Apple apologized and lowered the price for replacement batteries to U.S.$29 from U.S.$79.

The case is In re Apple Inc Device Performance Litigation, U.S. District Court, Northern District of California, No. 18-md-02827.

(Reporting by Jonathan Stempel in New York; Editing by Dan Grebler)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags AppleiPhone

Events

Featured

Slideshows

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments