Apple has agreed to pay up to $500 million to settle litigation accusing it of quietly slowing down older iPhones as it launched new models.
The preliminary proposed class-action settlement, wich requires approval by U.S. District Judge Edward Davila in San Jose, California, calls for Apple to pay consumers $25 per iPhone, which may be adjusted up or down depending on how many iPhones are eligible, with a minimum total payout of $310 million.
Apple denied wrongdoing and settled the U.S. case to avoid the burdens and costs of litigation, court papers show.
The settlement covers U.S. owners of the iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus 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.
Consumers contended that their phones’ performance suffered after they installed Apple software updates. They said this misled them into believing their phones were near the end of their lifecycles, requiring replacements or new batteries.
Apple attributed the problems mainly to temperature changes, high usage and other issues, and said its engineers worked quickly and successfully to address them.
Following an initial outcry, Apple apologized and lowered the price for replacement batteries to $29 from $79.