PHOENIX — Apple will pay $113 million to settle the latest case alleging the the trend-setting company duped consumers by deliberately slowing down older iPhones to help extend the life of their batteries.
The payment announced Wednesday in Arizona resolves a case brought by more than 30 states for Apple acknowledged a software update released in 2017 bogged down the performance of older iPhones. It follows a previous settlement requiring Apple to pay up to $500 million to settle a class-action lawsuit brought in California.
Apple defended its actions as a way to prevent unintended shutdowns of the older iPhones as their batteries deteriorated but critics contended the company did it to help spur more consumers to upgrade to newer models.
"Many consumers decided that the only way to get improved performance was to purchase a newer-model iPhone from Apple," Arizona Attorney General Mark Brnovich wrote in court documents made public on Wednesday. "Apple, of course, fully understood such effects on sales."
The company's "unfair and deceptive acts and practices" potentially artificially inflated Apple's sales by millions of devices per year, the complaint added.
The Cupertino, California, company apologized for slowing down the iPhones and agreed to replace batteries at a steeply discounted price. Apple, though, has never acknowledged any wrongdoing.
The settlement with the states adds to Apple’s bill, which it can easily afford to pay. The company generates $275 billion annual revenue and boasts a market value of $2 trillion.
That settlement will be split among the states who filed the suit against Apple — Wisconsin, for example, will receive around $3.3 million in damages; $7.6 million will go to Texas, and California will get $24.6 million of the total settlement.
California Attorney General Xavier Becerra applauded the settlement in a statement on Wednesday, slamming Apple for withholding information about battery performance from its customers while passing it off as an update.
“This type of behavior hurts the pockets of consumers and limits their ability to make informed purchases. Today’s settlement ensures consumers will have access to the information they need to make a well-informed decision when purchasing and using Apple products," Becerra said in part.
As part of Wednesday's judgement, the tech company also agreed to several "injunctive terms," which includes maintaining an easily accesible website on battery performance and software issues across the company for the next three years.
The Associated Press contributed to this report.
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