Apple company has reportedly agreed to pay a settlement of up to US$ 500 million, following a lawsuit accusing the company of intentionally slowing down the performance of older phones to encourage customers to buy newer models or fresh batteries.
The preliminary proposed class action lawsuit was disclosed a few days ago and would see Apple pay consumers US$ 25 per phone, as reported by Reuters.
Any settlement needs to be approved by U.S. District Judge Edward Davila, who oversaw the case brought in San Jose, Calif.
For consumers, the US$ 25 payout may seem a little low, as a new iPhone can cost anywhere from US$ 649 to US$ 849 (for a lower-end model). The cost may be varied depending on how many people sue, and the company is set to pay at least US$ 310 million under the terms of the settlement.
For its part, Apple is denying wrongdoing in the case and said it was only agreeing to avoid the cost and burden associated with the lawsuit.
Any U.S. owner of the iPhone 6, 6 Plus, 6s, 6s Plus, 7 Plus or SE that ran on iOS 10.2.1 or any of the later operating systems are covered by the settlement. Users of the iPhone 7 and 7 Plus which ran iOS 11.2 or later before 21 December 2017 are also covered by the settlement.
Apple customers said their phone performance slowed down after they installed Apple software updates. The customers contend that Apple's software updates intentionally degraded the performance of older models to encourage customers to unnecessarily upgrade to newer models or install new batteries.
Lawyers for Apple said that the problems were mainly due to high usage, temperature changes and other issues and that its engineers tried to address the problems as quickly as possible.
The preliminary proposed class action lawsuit was disclosed a few days ago and would see Apple pay consumers US$ 25 per phone, as reported by Reuters.
Any settlement needs to be approved by U.S. District Judge Edward Davila, who oversaw the case brought in San Jose, Calif.
For consumers, the US$ 25 payout may seem a little low, as a new iPhone can cost anywhere from US$ 649 to US$ 849 (for a lower-end model). The cost may be varied depending on how many people sue, and the company is set to pay at least US$ 310 million under the terms of the settlement.
For its part, Apple is denying wrongdoing in the case and said it was only agreeing to avoid the cost and burden associated with the lawsuit.
Any U.S. owner of the iPhone 6, 6 Plus, 6s, 6s Plus, 7 Plus or SE that ran on iOS 10.2.1 or any of the later operating systems are covered by the settlement. Users of the iPhone 7 and 7 Plus which ran iOS 11.2 or later before 21 December 2017 are also covered by the settlement.
Apple customers said their phone performance slowed down after they installed Apple software updates. The customers contend that Apple's software updates intentionally degraded the performance of older models to encourage customers to unnecessarily upgrade to newer models or install new batteries.
Lawyers for Apple said that the problems were mainly due to high usage, temperature changes and other issues and that its engineers tried to address the problems as quickly as possible.
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