End of dispute: Apple to pay $500 million settlement

Apple to pay $500 million settlement over slowing down old iPhones

The giant is accused of slowing down older iPhone models to force users to buy new ones.

Details of the Apple settlement

According to documents published on Friday in a US district court in San Jose, California, the proposed settlement agreement requires Apple to pay £20 per affected iPhone model. In total, at least £250 million and at most £400 million. The amount each user receives may increase or decrease depending on the number of claims filed, as well as any additional legal fees and expenses approved by the court.

The settlement, approved by the judge on 3 April, ends a legal battle that lasted more than two years, during which Apple tried to mitigate the global backlash.
The company admitted in December 2017 that successive software updates deliberately slowed down older iPhones. This came after angry customers and tech analysts reported that the updates caused performance drops. Some suggested Apple did it to force users to upgrade to the latest iPhone model, but the company defended itself by saying it was intended to address issues with older lithium-ion batteries that would suddenly shut down phones to protect their components.

Details of the Apple settlement over slowing down iPhones

Details of Apple's $500 million settlement over slowing down iPhones

Apple later apologised and offered customers a reduction in the battery replacement cost from £63 to £23 in January 2018. The company's CEO, Tim Cook, admitted a year later that 2018 revenue was partly affected by the "significantly reduced price for iPhone battery replacement."

A state judge still has to approve the settlement.

Summary

Apple will pay between £250 million and £400 million as part of a settlement ending a more than two-year legal dispute over deliberately slowing down older iPhones with software updates. Each affected user will receive at least £20 per device. The company admitted the measure was intended to protect lithium-ion batteries from suddenly shutting down phones, but customers and analysts saw it as an attempt to force them to buy newer models.

After the scandal, Apple apologised and reduced the battery replacement cost from £63 to £23. CEO Tim Cook admitted that this decision significantly affected the company's revenue in 2018. The settlement still has to be approved by a state judge.