Some Owners of Old iPhones to Get $200 Each

Apple has reportedly agreed to pay $53 million to settle a lawsuit concerning iPhone warranties. Subject to the class suit filed in San Francisco, California, was Apple's refusal to cover devices under warranty -- either the standard one-year coverage or extended two-year plan -- that it believed were water damaged. Apple's previous policy was that if a white indicator tape embedded near the phone's headphone or charging portals turned pink or red, it means that the device was exposed to water, thus the warranty's void. But 3M, the tape's maker, acknowledged that humidity, not water contact, could have caused the color to at least turn pink. The settlement could leave owners with affected devices with around $200, with the actual figure depending on how many people actually make claims.

What Else You Need To Know

  • The settlement applies to owners of Apple's first iPhone up to its 3GS model, as well as the second and third-gen iPod Touch.
  • Apple admits no wrongdoing in the settlement, which still needs the judge's approval.
  • The $53 million payout won't have a material effect on Apple's liquidity as the company had around $137 billion cash hoard as of the end of 2012.

Other sources

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