Apple Inc has agreed to pay up to $500 million to settle litigation accusing it of quietly slow down older iPhone as it launched new models, to induce owners to buy replacement phones or batteries. The preliminary proposed class action settlement was disclosed and requires the approval by U.S. District Judge Edward Davila in San Jose, California. Apple to pay consumer $25 per iPhone, which may vary depending on how many iPhones are eligible, with a minimum total payout of $310 million.
Apple denied wrongdoing and settled the nationwide case to avoid the burdens and costs of litigation, court papers show. If there is an issue with consumers’ performance suffered after the user installed the Apple software updates. They said mislead them into believing their phones were near the end of their lifecycles, replacement of phone if required or new batteries. Apple attributed the problem the major problem is changes in temperature, high usage and other issues, and said its engineers worked quickly and successfully to address them.
Read EquityPandit’s Nifty Outlook for the Week