iPhone Users Receive $500M Settlement From Apple

Clear Facts:

• Apple is beginning payments from its $500 million settlement, three years post agreement, to iPhone users who claimed the company slowed down older phone models.
• The tech giant had accepted the slowdown but mentioned it was to prevent phones from shutting down unexpectedly and was not a tactic to push users to newer models.
• Eligible users, who were part of the class action lawsuit, will each receive a payout of $65. The included iPhone models range from the iPhone 6 series to the iPhone 7 series, based on specific iOS versions.

Three years following the agreement, iPhone users are now receiving payments as a part of Apple’s $500 million settlement.

This resolution comes as a result of a 2020 class action lawsuit that accused Apple of deliberately slowing down older models of iPhones, an assertion that Apple confirmed in 2017.

The tech behemoth explained that this deceleration, which was embedded in its iOS software, was aimed at preventing older iPhones from shutting down while executing particular functions or when the battery was low.

Apple negated claims suggesting this tactic was to persuade users to upgrade to newer models.

Contrary to its claims, the company had not intimated this feature to its customers, leading many to believe that the sluggishness was purely due to the device’s age, as reported by The Verge in 2020.

Responding to the allegations, Apple not only conceded to the settlement but also rendered an apology to its iPhone user base. The company presented replacement batteries to those who raised concerns and amended its software.

However, the anticipated settlement saw a considerable delay before fruition. Only now has a judge permitted the settlement payments to commence for those implicated in the lawsuit.

The delay is attributed to objections raised by two iPhone owners who were in disagreement with certain clauses and expressed their intent to appeal particular sections. Nonetheless, this appeal was dismissed by the 9th U.S. Circuit Court of Appeals, as per CNET.

The iPhone models encompassed within the settlement include iPhone 6, 6S, 6S Plus, 6 Plus, or SE running iOS 12.2.1 or a newer version, and the iPhone 7 or 7 Plus operating on older iOS software from December 2017.

In a noteworthy mention, according to a recent study in April 2023 by Counterpoint, the iPhone 14 series reigns supreme in the U.S market, with iPhone 14 leading at 14 percent sales share.

Given the approval in March 2020, the settlement estimated a staggering 3 million claims.

However, only those who officially registered for the class action lawsuit are eligible for a payout, which is set at $65 per registrant.

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