Apple has agreed for a compensation to its users in a lawsuit that accused the Cupertino giant of intentionally making tech that eventually slowed down iPhones. This could end up costing the company between $300 million to $500 million. And lots of users might get a piece of this action, as Apple agreed to this settlement instead of going to court against the case.
The allegations on Apple say that the company deliberately slowed down its older phones to fuel the sales of newer launches. The settlement was announced on Friday, and still awaits approval by U.S. District Judge Edward Davila in San Jose, California.
The company has agreed to pay to the owners of its older phones, an amount of $25 per customer, a number which can total up to about $310 million and is subject to changes depending upon the number of users eligible for the payout. Named class members will receive $1,500 or $3,500, and around $90 million will go toward attorneys. $310 million is the least amount of the settlement, so if less users apply, the $25 amount can increase. However, if the settlement reaches an amount higher than $500 million, dollar per user can decrease.
Apple denied wrongdoing and settled the nationwide case to avoid the burdens and costs of litigation, court papers show.
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. Users operating devices older than iPhone 6(launched on September 19, 2014) and newer than iPhone 7 Plus(launched on 16 September, 2016) will not be able to apply for the recuperation.
Apple has defended its innocence and has stated that the slowing down is because of varying temperatures, high usage, and other issues. Analysts have time and again used the term ‘throttle’ to explain the phenomena.
The company states that the reason it went for this settlement instead of defending its case is to avoid the burdens and costs of litigation. However, users have frequently complained about their devices slowing down after installing newer updates, giving them an illusion that their devices are outdated and near the end of their cycles.
However, the company also has a cause to celebrate, as it has attained the permission to enter the Indian market directly instead of relying on a 3rd party due to Tim Cook’s close ally Trump’s lobbying efforts.