uploads/2018/03/smartpho-e-upgrade-5-1.png

Why Apple Is Facing Lawsuits

By

Updated

Apple faces multiple lawsuits over throttled speeds of old iPhones

Tech (technology) giant Apple (AAPL) is facing 59 lawsuits from users after the iPhone maker disclosed last year that it throttled the speeds of old phones to preserve battery life.

The company also said late last year that it would never intentionally shorten or degrade the life of its devices. The company said it would slash the battery replacement cost by $50 to $29 for most customers with iPhones that are out of warranty.

Reports say this could be the biggest legal challenge the company has faced since it made its first smartphone nearly 11 years ago.

Article continues below advertisement

Lawsuits come at a time when Apple is seeing a decline in iPhone demand

Users allege that Apple didn’t disclose to them that if they upgraded to a new iOS version, their iPhones would install a feature that dampened the iPhone’s performance. Consumers have complained for years that their iPhones seemed to have slowed down after a new model was launched.

The lawsuit comes at a time when the company is also looking at the possibility of fewer iPhone shipments. While iPhone sales generated revenue growth of 12.7% YoY (year-over-year) in fiscal 1Q18 (quarter ended December 2017), iPhone shipments have declined 1% YoY. Global smartphone shipments declined YoY in 4Q17, according to various reports.

Advertisement

More From Market Realist