Apple’s $500 million iPhone settlement marks a significant resolution to a class-action lawsuit accusing the tech giant of intentionally throttling older iPhone models to slow their performance.
This article provides detailed information about the settlement, its background, the eligibility criteria for affected users, the compensation amount, and the claim process. It also addresses common questions to help users understand if they qualify and how to proceed.
Background of the Apple $500 Million iPhone Settlement
In late 2017, Apple acknowledged that certain software updates introduced in iOS caused performance slowdowns on some older iPhone models. The company explained this was intended to manage aging lithium-ion batteries to prevent unexpected shutdowns. However, many consumers and advocacy groups believed that Apple intentionally slowed down older phones to prompt users to upgrade to newer models.
This controversy, often termed “Batterygate,” led to numerous class-action lawsuits across the United States. The lawsuits claimed that Apple’s throttling practices were deceptive and harmed consumers by degrading device performance without clear disclosure.
After years of litigation, Apple agreed in 2020 to settle the lawsuit with a payment of up to $500 million. The settlement is one of the largest in tech consumer litigation history and covers millions of affected users in the US who owned specific iPhone models.
Which iPhone Models Are Included?
The settlement applies to users of the following iPhone models, provided they ran certain iOS versions before a cut-off date:
| iPhone Models | Required iOS Version | Cut-off Date |
|---|---|---|
| iPhone 6, 6 Plus | iOS 10.2.1 or later | Before December 21, 2017 |
| iPhone 6s, 6s Plus | iOS 10.2.1 or later | Before December 21, 2017 |
| iPhone SE (1st gen) | iOS 10.2.1 or later | Before December 21, 2017 |
| iPhone 7, 7 Plus | iOS 11.2 or later | Before December 21, 2017 |
If you owned or used any of these devices in the US during that timeframe, you are potentially eligible for the settlement payout.
Key Details of the Settlement
Apple’s settlement offers a minimum guaranteed payout of $310 million and a maximum payout of $500 million, depending on the number of claims filed. Eligible users receive approximately $25 per affected device, with the payment amount per claimant varying somewhat based on total claims and any court-approved legal fees.
Some users who submitted valid claims have been reported to receive payouts around $65 to $92, reflecting adjustments based on participation rates.
Apple has consistently denied any wrongdoing, emphasizing that the settlement was reached to avoid prolonged litigation costs and inconvenience to customers.
Eligibility Criteria for the Settlement
To be eligible to file a claim and receive compensation, individuals must meet several requirements:
- Be a resident of the United States or its territories.
- Have owned or used at least one of the eligible iPhone models listed above.
- Run the specified iOS versions on those devices before December 21, 2017.
- Experience diminished device performance due to the software throttling.
The settlement specifically covers only US residents, excluding individuals in other countries.
How to Check Eligibility and File a Claim?
Eligible claimants were required to submit claim forms by the official deadline previously set by the court. While the initial claim deadline has passed, many users who submitted claims before the cut-off have started receiving payments.
The claim process generally involved:
- Submitting proof of ownership or use of an eligible iPhone model.
- Confirming the iOS version used on the device before the cut-off date.
- Completing the settlement claim form provided by the administrators.
Those who missed the deadline are no longer eligible to participate in the settlement payout.
Why Did Apple Slow Down iPhones?
Apple stated that the software updates aimed to prevent unexpected shutdowns caused by degraded lithium-ion batteries in older iPhones. Batteries with diminished capacity sometimes could not supply peak power demands, leading to device shutdowns. The throttling mechanism was Apple’s way of managing performance dynamically to balance battery health and device longevity.
Despite this explanation, critics argued this was not adequately disclosed, and the slowdowns reduced user experience unfairly, prompting the legal actions.
Financial Impact on Apple and Its Customers
The settlement cost Apple a minimum of $310 million with potential maximum costs up to $500 million. While substantial, this amount is modest compared to Apple’s overall revenue and device sales.
For consumers, the payouts represent a small monetary compensation relative to the device cost but symbolize acknowledgement of the controversy.
Summary Table of Settlement Highlights
| Aspect | Details |
|---|---|
| Settlement Amount | $310 million to $500 million |
| Affected Devices | iPhone 6, 6 Plus, 6s, 6s Plus, SE, 7, 7 Plus |
| Required iOS Versions | iOS 10.2.1+ (6 models), iOS 11.2+ (7 models) |
| Cut-off Date | December 21, 2017 |
| Estimated Payout per Claim | Approximately $25 to $92 |
| Eligibility | US residents only |
| Claim Deadline | Passed (claims no longer accepted) |
Apple $500 Million iPhone Settlement FAQs
Q1: Which iPhone models are covered under this settlement?
A1: iPhone 6, 6 Plus, 6s, 6s Plus, SE (1st gen), 7, and 7 Plus running specified iOS versions before December 21, 2017, are covered.
Q2: Who is eligible to receive a payout?
A2: Any U.S. resident who owned or used the eligible iPhone models with the qualifying iOS versions during the specified timeframe.
Q3: How much money can I expect from this settlement?
A3: Payments vary but generally range from about $25 to $92 per qualifying device, depending on the number of claims.
Q4: Can people outside the United States claim compensation?
A4: No, this settlement only applies to residents of the United States and its territories.
Q5: Is the deadline to file a claim still open?
A5: No, the deadline to file claims has passed, and no new claims are currently being accepted.
Conclusion
The Apple $500 million iPhone settlement resolves a major legal dispute concerning performance throttling in older iPhones. Eligible US users of affected models who applied before the deadline have begun receiving payments ranging typically from $25 to around $90.
This settlement underscores the importance of transparency in software management and consumer trust. While Apple maintained that its intent was to protect battery health, the legal outcome stresses the need for clear communication with users about device performance issues.
