A recent court document shows that Apple reached a $95 million settlement on Friday to settle a class-action lawsuit. The lawsuit alleges that Apple provides customers with refurbished and replacement equipment that violates the law. Apple’s repair terms and conditions in the United States stipulate that when providing services to customers’ products, “new or refurbish components or products that are equivalent to new products in terms of performance and reliability can be used”.
However, the plaintiff claims in the lawsuit that the refurbished or “remanufactured” equipment “is not equivalent to new equipment in terms of performance and reliability,” and therefore demanded that Apple compensate for the economic losses.
Relevant users include all U.S. residents who have purchased the AppleCare protection plan or AppleCare+ on or after July 20, 2012, directly or through the iPhone upgrade program, and have obtained refurbished and replaced devices. Court documents show that if approved, the settlement fund will be evenly distributed among the group members. However, this will be based on the number of refurbished replacement equipment they receive.
After the attorney fee and other expenses, the group will still receive a substantial sum. This sum will be between $63.4 million to $68.1 million. Court documents also show that Apple “resolutely denies” that the refurbished equipment is of poor quality. However, considering the time and cost required to continue the trial, it chose to reach a settlement with the plaintiff. The plaintiff will seek court approval as soon as possible on or after October 20.
Apple may fully enter the advertising market
Royal Bank of Canada Capital Markets analyst, Brad Erickson, released an investment report that Apple’s recent change in iPhone privacy is a sign of things to come. According to him, this is a sign that Apple may set its foot in a network dominated by Facebook and Google. The expectation is that Apple will enter into the advertising market.
“We see changes in privacy as a signal that Apple may want to compete in the global advertising market”. Eriksson gave Facebook, Amazon, and Alphabet stocks “outperform” ratings. In August, Evercore ISI analysts claims that the Cupertino company intends to enter the advertising market.
Erickson said, “Apple will secretly invest in search algorithms under the guise of privacy”. He may be referring to an advertising revenue-sharing agreement with a search engine represented by Google. If advertisers “have no choice because of losing data from Apple devices,” Google’s YouTube and Amazon Connected TV will benefit. This is because they will become the sub-optimal choices.