IPhone Slow-Down Scandal Prompts Full-Blown Federal Investigation

VCG  VCG via Getty Images
VCG VCG via Getty Images

02 February, 2018

Apple upset consumers when it confirmed that it was indeed slowing down older iPhones, and there are now a bunch of lawsuits against Apple over the slowdown controversy.

U.S. authorities are investigating whether Apple violated securities laws concerning its disclosures about a software update that slowed older iPhone models, according to Bloomberg.

Apple in a statement said it "have never - and would never - do anything to intentionally shorten the life of any Apple product".

In a December statement, Apple explained the iOS 10.2.1 update of 2016 was created to manage unexpected shutdowns afflicting iPhone 6, iPhone 6s and iPhone SE models, particularly those with chemically depleted batteries. iPhone 7 handsets had similar features that would be addressed with iOS 11.2, as would future devices, Apple said.

Apple didn't explicitly say how the fix works, and users figured out what was happening later in the year.

We sought to further improve the customer experience in December by announcing a significant discount on replacement batteries for certain iPhones. According to it, the software update has new features that will help users to monitor the condition of their batteries and safeguard against potential slow performance.

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Furthermore, the company has promised more transparency regarding when a device is being actively slowed down due to battery health and will offer customers the option to disable the feature via a software update.

BMO Capital Markets lowered its rating for Apple shares to market perform from outperform on Wednesday, predicting weaker-than-expected sales for the company's March quarter. Other minor changes include new animoji (on iPhone X), iCloud support for Messages, and slight changes to Apple Music and Apple News, according to Apple Insider.

The iPhone maker would only confirm that the agencies are asking questions. Apple added in a statement obtained by CNBC that it wants to ensure "iPhones last as long as possible".

As reported by Nikkei, Apple has chose to cut production of the iPhone X. It is said that the decision is based on the slow holiday and year-end sales.

Apple is now running a program in which all eligible iPhone devices can have their batteries replaced for a mere $29.

Tim Cook, CEO at Apple apologised to the company's customers who thought Apple slowed down the phones for money.

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