Apple to Compensate Users in $500M “Batterygate” Settlement

August 18, 2023
1 min read
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Several million iPhone users might soon benefit from a financial settlement due to their older iPhones experiencing reduced performance after certain software updates.

Apple has committed to disbursing an amount ranging from $310 million to $500 million, which could benefit an estimated 3 million users of iPhones manufactured before 2018. This decision comes from a statement released by attorneys representing Apple customers. These compensations relate to the 2020 claims filed against Apple regarding the “batterygate” situation.

Mark C. Molumphy, a key attorney from the firm Cotchett, Pitre & McCarthy, expressed, “Affected Apple customers are now set to receive direct cash payments.”

This settlement follows the rejection of Apple’s attempt to counter a class-action lawsuit initiated in 2017. This move by the court enables “consumers impacted by software throttling” to obtain the proposed compensations, said the legal representatives.

“Software throttling” denotes Apple’s strategy of intentionally decelerating the functionality of certain older iPhones with batteries that degrade over time. Apple’s aim was to stop these phones from abruptly turning off under high power demands. Apple clarified to Verge in 2017 that the slowing down was not a ploy to motivate users to upgrade. Instead, once the old battery was replaced, the iPhone would operate at its original speed.

The settlement doesn’t imply any misconduct on Apple’s part, as stated on the settlement’s official website.

Key Points About the Settlement:

– Payout Amount: Eligible iPhone users who filed a claim can anticipate approximately $65, said attorney Mark C. Molumphy on CBS MoneyWatch. This could rise to $85-$90 based on total claims. Given that roughly 3.3 million users filed claims, they might get $128 each after deductions for legal expenses.

– Eligibility: iPhone 6, 6 Plus, 6S, 6S Plus, and SE owners with iOS 10.2.1 or newer, and iPhone 7 and 7 Plus users with iOS 11.2 or newer installed before Dec. 21, 2017, may qualify. But, only those who filed claims by the Oct. 6, 2020 deadline might receive a payout.

– Payment Schedule: The exact date for settlement disbursement remains uncertain. Neither Apple nor its customer lawyers have commented on this to CBS MoneyWatch.

– Delays in Disbursement: Typically, class-action lawsuits span between two to three years, sometimes longer if appeals arise. Legal procedures and the appeal process have extended the “battery gate” lawsuit, causing delays in payment distribution.

The “Batterygate” episode has been a significant event in Apple’s history, emphasizing the importance of transparency and consumer trust. As millions of iPhone users await their settlements, this incident serves as a reminder for tech giants about the weight of responsibility they hold. While monetary compensations are on the horizon, the broader lesson lies in the value of openness and integrity in the rapidly evolving tech world.

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