USA agencies reported to be probing Apple over slowing iPhones

Marlene Weaver
February 1, 2018

The US Justice Department and the US Securities and Exchange Commission have begun questioning the iPhone maker, specifically on whether the company committed violations over certain disclosures to its investors.

While it's true that the slowdown has angered consumers, United States investigators are more concerned that the company could have misled investors about the performance of older phones.

The government has requested information from the company, Bloomberg reported, citing people familiar with the matter.

Yesterday Apple received questions from the U.S. government on throttling old iPhones, and today they've released a statement.

Recently, users of the iPhone 6, iPhone 6s and iPhone 6s Plus units launched a scathing attack on Apple after learning that their phones were being intentionally slowed down.

The DOJ declined to comment, and the SEC did not reply to an AFP inquiries.

Apple shares have dipped over the past week, primarily because of reports that the company's special-edition iPhone X is not selling as well as expected.

The news comes after the Silicon Valley giant's shares have been under pressure on worries about weaker-than-expected sales of iPhone X ahead of its earnings report due on Thursday. Do you think Apple should have just come clean from the get-go?

Further complicating things, Apple for the first time previous year released three new devices, meaning the iPhone X competed for sales with the iPhone 8 and iPhone 8 Plus.

Apple says the reason for the software feature is to prevent unexpected iPhone shutdowns, not to encourage users to update to a newer iPhone. In said statement, Apple suggested that their next iOS update would include a kill switch for the battery health feature update they'd included previously.

Apple was previously investigated by the US Department of Justice in 2012 over the price of digital book downloads.

According to Apple, the software feature to view battery health and turn off any performance restrictions will be available through its developer beta program in February, and as a public update in this Spring. But it resulted in disappointing performance for users.

The land could see Wistron expanding its assembly operations to also cater to clients other than Apple, industry officials said. However, Apple looks set to introduce the feature with the iOS 11.3 update, allowing users to utilise Face ID in Ask to Buy, instead of manually entering a password every time.

Other reports by Insurance News

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