Apple will pay up to $500 million in a class-action settlement (opens in new tab), ending litigation that accused the Cupertino company of slowing down older iPhones when it releases new models every year.
Customers argued their iPhone’s performance declined after installing annual Apple software updates, or new iOS editions. This made them believe their phones, some of which were less than 3 years old, required new batteries or replacements entirely.
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The preliminary settlement still needs approval by a U.S. District Judge in California before eligible iPhone owners can file a claim.
As it currently stands, the settlement requires Apple to pay out $25 per iPhone, although that could be adjusted based on how many total iPhones are eligible. Apple must also fulfill a minimum payout of $310 million.
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Following complaints concerning slow iPhones, Apple adjusted the price for replacement batteries to $29 from $79. But the company denied any wrongdoing, or what some call "throttling" of older iPhones, blaming alternative elements like temperature changes to performance issues.
According to Reuters (opens in new tab), lawyers for the consumers described the settlement as "fair, reasonable, and adequate."
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