Apple Inc. paying $3.4 Mn. to settle ‘Planned Obsolescence’ class-action lawsuit: Each registered Chilean iPhone users to receive $50

Apple Inc. iPhone
Apple Inc. settles yet another Planned Obsolescence class-action lawsuit. Pic credit: Jan Vašek/Pixabay

Apple Inc. has officially agreed to pay $3.4 Million to settle a case about ‘Planned Obsolescence’. The class-action lawsuit that has won the settlement involves about 150,000 Chilean iPhone users.

Apple Inc. will reportedly settle a class-action lawsuit for the intentional degradation of the performance of its iPhone mobile devices. The lawsuit alleged iPhone users noticed that their older devices performing significantly worse after an iOS update in 2017.

Apple Inc. to pay for ‘Planned Obsolescence’?

Apple Inc. will settle a class-action lawsuit filed by about 150,000 Chilean iPhone users. The $3.4 Million will be paid as a settlement.

Each registered and affected iPhone user in Chile stands to gain $50. However, as is the case with any smartphone, not all buyers will make $50.

The $50 payout will have to be shared with each registered owner of the affected iPhone device. For example, a second-hand phone with two owners could receive up to $25 each.

It is not clear how deep an impact this settlement will have in the near future. There are, after all, multiple class-action lawsuits against Apple Inc. for incorporating ‘Planned Obsolescence’.

The most notable lawsuits are from United States, Italy, Spain, Belgium, and Portugal. In America alone, one 2018 class-action lawsuit compelled Apple to pay $500 million. In November of the same year, the company agreed to pay an additional $113 million to over 30 U.S. states.

These payouts are a direct result of an investigation that found Apple Inc. guilty of practicing planned obsolescence. Simply put, the investigation claimed the iPhone maker was well aware of its action and still went ahead with a software update that deprecated the performance of its devices.

Does Apple accept it intentionally slowed down system performance in old iPhones?

Just like the lawsuits that Apple Inc. settled, this one too included the iPhone 6, iPhone 6 Plus, iPhone 6s Plus, iPhone 7, iPhone 7 Plus, and iPhone SE.

There’s no doubt that Apple released the iOS 10.2.1 update and programmed in a feature that would slow down system performance in old iPhones by reducing the CPU’s clock speed. The company has maintained that its intentions were to ensure reliable performance.

Apple Inc. claims it wanted to prevent the phone from spontaneously shutting off due to poor battery health in degrading iPhones. And, its only oversight was that it failed to inform the user about this change and the detrimental effect it would have on their iPhone’s performance.

Needless to mention, Apple Inc. has managed to upset a lot of iPhone users, and come close to fracturing loyalty and trust. However, the company has undertaken multiple programs to mend the bruised ties.

Apple has been releasing iOS updates with features that protect and extend battery life. Moreover, the company has built a powerful and reliable global battery replacement program.

The settlement amount is undoubtedly a small change for a Trillion Dollar company. However, the settlement could serve as yet another reminder to Apple and other companies about the repercussions of intentionally degrading performance.

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