Apple to pay out $500 million for slowing down iPhone

Apple Inc. will settle litigation for slowing down older iPhones to the tune of $500 million in compensation to owners who had to buy replacement phones.

Quinn Patrick Montreal QC

Apple Inc. will settle litigation accusing it of slowing down older iPhones to the tune of $500 million in compensation to owners who had to buy replacement phones and batteries, according to The Epoch Times.

The initial complaints over slow iPhones garnered an apology from Apple and they lowered the price for replacement batteries from $79 to $29.

Apple maintains their innocence, denying any wrongdoing and claimed to have settled the case only to avoid the cost of litigation, according to court documents.

The settlement requires Apple to pay consumers $25 per iPhone, a number which may increase or decrease depending on how many phones are eligible. Apple will have to fork over a minimum total payout of $310 million.

The settlement of the preliminary proposed class-action lawsuit was disclosed on Friday night, however, it still requires approval by U.S. District Judge Edward Davila in San Jose California.

Consumers claimed that after installing Apple software updates on their phones, the speed and performance of the phone dramatically suffered. This result misled consumers into believing that their phone was at the end of its life-cycle, prompting them to buy a new phone or battery.

Apple said these problems were a result of temperature changes, high usage, and other issues, claiming that their engineers worked quickly and successfully to address them.

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.

Lawyers defending the consumers said the settlement was “fair, reasonable, and adequate.” They referred to the payments of $25 per iPhone “considerable by any degree,” revealing that their damages expert had considered no more than $46 per iPhone.

Lawyers will seek up to $93 million, or 30 percent of $310 million, for legal fees, with an additional $1.5 million sought for expenses.


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