Published: Thu, February 01, 2018
Tech | By

US government officials investigating Apple over iPhone throttling

US government officials investigating Apple over iPhone throttling

Apple's push for performance and security improvements over new features will also apply to this year's Mac software, but one key feature remains on the roadmap for 2018: The ability for Macs to run iPad apps.

Users first discovered that Apple was doing something to deliberately slow down older phones when their clunky iPhone started performing better, or like new, when they put in a new battery.

THE US GOVERNMENT is reportedly investigating whether Apple violated securities laws with its iPhone-throttling software updates. The Justice Department did not respond to a request for comment. Additionally, users will be able to see whether the power management feature is being used to prevent unexpected shutdowns and turn it off if they so choose. The analyst, who reduced his rating on the stock from outperform to market perform, believes that an unwillingness from consumers to continue paying more for iPhones will mainly be to blame for a weaker outlook.

Apple apologized in December for slowing down iPhones without openly informing customers of the change. Last week, Apple teased a new software update that will give users the ability to opt out of the company slowing down their phones.

Apple contract manufacturer Wistron is planning a new iPhone production facility in Bengaluru, India, according to Reuters, and will likely begin assembling cheap iPhone 6s models there for Indian customers. The price to replace a battery was cut from $79 to $29, with the deal available worldwide through December 2018. Other than this, US-based telecom operator Verizon has also reported a decline in new postpaid registrations and users are keeping their phones for longer.

In a statement Wednesday, Apple said it had received requests for information about the issue from US government agencies.

"Even if Apple's actions were indeed only meant to avoid unexpected shutdowns in older phones. there should have been better transparency with respect to these practices", Thune wrote. She said that wasn't necessarily a bad thing for Apple, noting that the older models are cheaper to produce and generate relatively high margins per unit.

It was said to be too early in the probe to speculate regarding the potential for Apple to be accused of wrongdoing. "And maybe we should have been clearer".

In the fourth-quarter of 2017, Apple reported iPhone revenues of $28.846 billion, which marked merely 2.4% year-over-year growth.

Story by Hayley Tsukayama.

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