Apple's feature was meant to eliminate unexpected shutdowns that older iPhones were experiencing due to exhausted batteries, but it did so through throttling the maximum performance of devices with chemically aged batteries.
The Cupertino, California, company apologized for slowing down the iPhones and agreed to replace batteries at a steeply discounted price.
WASHINGTON, D.C. - Attorney General Karl A. Racine today announced that Apple will pay the District almost $2.7 million as part of a $113 million multistate settlement for intentionally slowing down or "throttling" the performance of iPhone devices to cover up battery problems.
In addition to the monetary payment, Apple also must provide truthful information to consumers about iPhone battery health, performance, and power management.
This particular deal was also said to be happening with some urgency, and it's likely that it's connected to this recent report of Apple's assembly partners ramping up trial production, since presumably before Foxconn and Nippon can make folding iPhone prototypes for testing, they need to actually have the screens to put in them.
Almost 3.5 million iPhones in New Jersey were affected by the battery performance issues and undisclosed throttling, Grewal said.
Apple was aware in 2016 that aging iPhone batteries couldn't deliver sufficient power to the devices at certain times, particularly during high-performance tasks, Grewal said.
Affected iPhone owners who submitted a claim by the October deadline are entitled to receive $25 from Apple.
The settlement, Rodriguez said, "is not just about getting Apple to pay for its alleged duplicity, but just as importantly requires the company to abide by a variety of terms created to ensure greater transparency moving forward".
The company also allegedly said the updates would improve power management rather than reduce performance. However, state prosecutors still fault Apple for concealing the move from the public until December 2017.
Apple has agreed to pay $113 million to resolve a probe by state attorneys general into allegations that the company slowed down older iPhones in order to prevent their batteries from draining too quickly.
A spokesperson for Apple declined to comment on the settlement, but pointed to a section of the agreement which states that "nothing contained herein may be taken as or construed to be an admission or concession of any violation of law, rule, or regulation, or of any other matter of fact or law, or of any liability or wrongdoing, all of which Apple expressly denies". The iPhone-maker will pay $113 million spread around 30 states to end the investigation.