Apple settles US lawsuit over slow iPhones

03.03.2020 - Petr Mazaylo
Apple settles US lawsuit over slow iPhones

Apple Inc. will pay $500 million to resolve litigation that accused the company of deliberately slowing down older iPhones in each new model launch, as a way to encourage owners to buy the newer model or replacement to old iPhones.

The preliminary class-action settlement was revealed on Friday and is set to be approved by U.S. District Judge Edward Davila in San Jose, California.

The litigation demands for Apple to pay $25 per iPhone to consumers. This figure may be adjusted depending on the number of eligible iPhones, with a $310 million minimum payout.

Apple denied the allegations and chose to settle the nationwide case to avoid paying for the costs of litigation.

Consumers argued that their phones slowed down after installation of Apple software updates. This caused them to believe their phones have reached the end of their life cycles, therefore purchasing replacements.

Attributed stated that these problems may have been the result of temperature changes and high usage. The company added that their engineers have worked on the issues and have resolved them.

Lawyers for consumers said that the $25 payment per iPhone was considerable and that the settlement was sensible and right. The lawyers said that their damage experts said that the maximum payment per iPhone was $46.

The lawyers plan to push for $93 million, or 30% of $310 million in legal fees and $1.5 million in expenses.

After the initial concerns over the slowing iPhones, Apple issued a statement of apology and reduced the price of replacement batteries from $79 to $29.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?