Apple has initiated payments to settle a long-standing class-action lawsuit regarding allegations of deliberately slowing down certain iPhones in the United States.
The settlement, totaling $500 million (£394 million), allocates approximately $92 (£72) per claim. Apple, which agreed to the settlement in 2020, maintained its denial of any wrongdoing but expressed concerns about the escalating costs associated with a prolonged lawsuit.
This can be traced back to December 2017, when Apple, confirming longstanding suspicions among phone owners, admitted to deliberately slowing down certain iPhones as they aged.
The company attributed this slowdown to the natural decline in battery performance over time, asserting that it aimed to extend the phones’ overall lifespan. However, the company was criticized and accused of throttling iPhone performance without informing customers, leading to widespread dissatisfaction.
The backlash culminated in the initiation of the US legal action. Initially estimated to amount to as little as $25 per individual, the actual payout seems to exceed those expectations, nearing four times the projected amount. Meanwhile, a parallel case in the UK seeks £1.6 billion in compensation and represents approximately 24 million iPhone users.
In November of the preceding year, Apple’s attempt to block a similar mass action lawsuit in the UK was unsuccessful. The case, initially filed by Justin Gutmann in June 2022, garnered the support of an estimated 24 million iPhone users.
Apple, characterizing the lawsuit as “baseless,” reiterated its commitment to product longevity and user experience, categorically denying any intention to curtail the lifespan of its products or compromise user satisfaction for upgrade motives.
While Mr. Gutmann expressed satisfaction with the US payments, he emphasized that it does not impact the ongoing UK case. He highlighted the lack of an admission of guilt from Apple, viewing the US settlement as a moral victory with limited practical implications for his case.
Undeterred, he indicated a determination to persevere in pursuing the UK class action, noting Apple’s vigorous opposition. The case is expected to progress to the Court of Appeal, where Apple seeks to halt proceedings. Although the timeline for future developments remains uncertain, Gutmann expresses hope for a trial in late 2024 or early 2025.
