DOJ, SEC probe Apple for slowing older iPhones

DOJ, SEC probe Apple for slowing older iPhones

DOJ, SEC probe Apple for slowing older iPhones

Apple deserves scrutiny for hubristic business practices that arguably deceived customers into thinking that their older iPhones were slowing down and needed to be replaced with a new model, such as the $999 iPhone X that went on sale in the fall.

Apple confirmed late Tuesday that it is responding to questions from USA government agencies concerning its handling of iPhone battery issues through a software update that throttled the performance of some handsets, Apple Insider reported.

The probe comes after reports previous year revealed Apple was deliberately slowing older iPhone models through software updates.

This examination is still in its infancy, as it is too early to conclude whether or not any penalties will be enforced.

Apple says it will give iPhone users the ability to turn off a software tool that can slow down device performance.

Apple released a statement today in which it said that the company would never degrade the user experience to drive customer upgrades.

Long downgraded his recommendation on Apple to market perform from outperform, and cut his price target on the stock to US$162 from US$199, also forecasting no year-over-year growth in the China market. Many investors have grown apprehensive based on reports that Apple's much-anticipated iPhone X has failed to live up to Wall Street sales expectations. Specifically, Guggenhiem analyst Robert Cihra opines that the importance of the iPhone X doesn't rest with a singular super cycle over a period of a few months, but rather that the device itself - with its new form factor and new features - will set the stage for a "multi-year" refresh cycle.

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With that said, Apple will still be one of the most watched companies to report this week. It appears the U.S. Justice Department has also begun investigating the Cupertino company for its deliberate slowing-down of older iPhone models when the battery reaches a certain threshold of usage. Additionally, a future iOS update will include tools that iPhone users can employ to measure the strength of the battery inside their iPhone.

Instead, the tech giant said batteries slowed down unexpectedly after an iOS upgrade year was introduced, although the upgrade was created to stop unexpected shutdowns and extend battery life.

Apple promises to contact clients within three to five times to let them know when their battery replacement can be completed.

These estimates do not represent the biggest gains, especially considering Q1 marks the first full quarter of iPhone X sales.

Apple also previewed some other new features to be released with its iOS 11.3 update this spring.

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