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US Agencies Probing Securities Violation by Apple Over iPhone Slowdown
02 February 2018, 09:20 | Virginia Benson
Apple generated $88.3 billion in revenue last quarter, a company record
When the phone was released in November Apple expected tomake 40 million units in the first quarter of 2018, but these figures have had to be drastically reduced because of its poor reception and slow sales in Europe, the USA and China.
Apple responded Wednesday to reports that the U.S. Securities and Exchange Commission and the Justice Department are investigating the company for allegedly throttling older iPhone models, saying the company would never do such a thing to drive sales of newer models.
Apple admitted last month that it has used software updates to limit the performance of older iPhones, saying the action was taken to protect against problems caused by ageing batteries. However, the government has not granted any to the company on the grounds that exceptions could not be made for Apple alone.
Meanwhile, the company said that its battery replacement programme at a discounted cost will be available from late January through December 2018.
Apple is projected to allow users turn off the feature that slows performance in order to preserve battery life, as part of the forthcoming iOS 11.3 update. "Apple shipped a record 22 million iPhones for the first time ever in a quarter in the U.S. which is an impressive feat because the Q4 promotional season was not almost as aggressive as previous years", Research Director Jeff Fieldhack said in a statement.
Consumers complained that Apple had been slowing down the performance of some older iPhones for about a year.
Apple has fought back against allegations from critics who said the company's recent iPhone throttling was an attempt at forcing customers to upgrade to new iPhones.
Apple Inc. (NASDAQ:AAPL) has not responded a request for comment. Our aim has always been to make products that our customers love.
Apple's iPhone slowdown scandal has turned into a matter of federal interest as United States agencies begin to conduct probes, Bloombergreported. Full disclosure is also the best policy and it sounds like Apple has a long way to go with slowdown related investigations and lawsuits.
MacRumors previously obtained an internal Apple memo which said iPhone 6 Plus replacement batteries were in short supply and inaccessible until late March or early April around the world. "They're looking at different areas. we have not received any official investment proposal".
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