WHAT YOU NEED TO KNOW:
- Apple agrees to pay US customers up to $500 million, with each receiving as much as $25 each, as part of its throttling settlement with the court. The deal covers eligible iPhone 6 and 7 models.
- Apple said that they had slowed down older phones in 2017 as a workaround on unexpected shutdowns due to degrading batteries.
- The company firmly denied accusations that they are downgrading older models to sell newer phones and said that they will never do such a thing.
Apple says it will pay customers up to $500 million after having long been accused that it was deliberately throttling, or slowing down, older iPhone models to push customers to buy newer models.
The action was Apple’s settlement to avoid litigation and court costs according to official documents. The company would pay US customers at least $310 million.
Some iPhone owners could get as much as $25 each, but if total claims exceed $500 million, customers could receive less than the $25. The deal covers eligible iPhone 6 and iPhone 7 models.
Over the last couple of years, customers have been complaining of performance issues after installing software updates.
According to Apple, they had slowed down the performance of older phones in 2017 to avoid unexpected shutdowns due to degrading batteries, but did not disclose that to customers. To compensate, the company offered discounted battery replacements throughout 2018.
Soon after, Apple released a “performance management feature” that allows iPhone users to choose whether or not they want their systems to slow down in order to keep pace with updates.
On the accusation of purposely downgrading the performance of older models to sell more phones, Apple strongly countered the notion.
In a statement, the company said that “We have never — and would never — do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades.”