Apple Set to Compensate Users Of Old, Slow iPhones With Up to $500 Million Following Dismissal of Final Appeal By US Judge: Report
The lawsuit centred around iPhone 6, 6 Plus, 6s, 6s Plus, and SE devices that operated on iOS 10.2.1 or later prior to December 21, 2017.
Owners of certain older iPhone models can anticipate receiving approximately $65 each in compensation, as a class-action lawsuit against Apple advances. as reported by SiliconValley.com. The lawsuit, which accused the tech giant of covertly slowing down phone performance, gained momentum after a judge's decision, and payments are now set to be distributed. In 2020, Apple, based in Cupertino, California, agreed to settle the class-action lawsuit by offering up to $500 million. The lawsuit alleged that Apple engaged in what was described as "one of the largest consumer frauds in history" by intentionally decreasing the performance of specific iPhone models to address battery and processor issues.
This week marked a significant turning point in the case, as the 9th US Circuit Court of Appeals dismissed an appeal from two iPhone owners who had objected to the settlement terms. With this final hurdle removed, the settlement process can now move forward.
The settlement agreement required Apple to provide the claims administrator with the names and contact information of individuals who owned or leased eligible iPhones. The claims submission deadline was October 6, 2020. The response was substantial, with approximately 3 million claims submitted. Based on the latest estimations, compensation is projected to average around $65 per claim. Tyson Redenbarger, the attorney representing iPhone customers in the lawsuit, provided this insight.
While Apple maintains its denial of wrongdoing, the company agreed to allocate a payment ranging from $310 million to $500 million to resolve the matter. The final amount paid by Apple, as well as the specific compensation awarded to each claimant, hinges on the number of claims approved. A portion of the claims is still under assessment, Redenbarger confirmed.
The lawsuit centred around iPhone 6, 6 Plus, 6s, 6s Plus, and SE devices that operated on iOS 10.2.1 or later prior to December 21, 2017. Additionally, iPhone 7 and 7 Plus models running iOS 11.2 or later were included.
The litigation, initiated in 2018, emerged in response to reports of iPhones unexpectedly shutting down, which first surfaced in 2015 and escalated in late 2016. Consumers expressed frustration over their devices powering off despite displaying a battery charge exceeding 30%. The lawsuit alleged that this phenomenon stemmed from a mismatch between hardware components, such as batteries and processing chips, and the growing demand of frequent software updates. Apple's solution was purportedly a software update that aimed to mitigate shutdowns but inadvertently compromised device performance by reducing speed.
In 2019, Apple argued in court filings that the effectiveness of lithium-ion batteries diminishes over time due to factors such as repeated charging, temperature variations, and regular usage. The company maintained that software updates involve trade-offs, as introducing additional features could lead to complexity and diminished speed, potentially impacting the lifespan of the hardware.
Beyond the class-action lawsuit, the discontent among consumers about the shutdowns and the alleged performance reduction prompted a separate lawsuit against Apple in 2020. The State of California, along with Alameda and Los Angeles counties, lodged a suit against Apple, which concluded with a $113 million settlement. Apple, while not admitting to any wrongdoing, resolved the case.
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