Apple settlement in iPod case would cost it USD 100 million

Apple settlement in iPod case would cost it USD 100 million

Apple is in news these days. First, the news of flattening sales chart of their popular digital music player led to a drop in the share prices of the company in the stock market. Later, rumors claimed that the company is considering moving over to Intel processors from IBM ones. Another news that could affect the company is the latest iPod battery life settlement, which is expected to cost Apple around USD 100 million.

The company would now be offering a USD 50 iPod rebate and would be giving extended service warranties to more than two million iPod customers. This is result of the ruling in a class action lawsuit, pending final court approval. Eight people had sued the company claiming that Apple promised a battery life, which did not match the actual usage figures leading to false assurance to the consumer.

The plaintiffs are happy that the company has decided to take appropriate action after the ruling. Apple had advertised that the battery life was expected to last 8 hours under normal usage. However, a lot of Apple iPod users have complaints about this being not the case. The company has for the time being refused to comment on the ruling.

The offer is on for the consumers who bought a first, second, or third generation iPod on or before 31 May 2004. They would have to fill out a claim form and would be receiving a $50 discount on any Apple products or services except iTunes downloads or iTunes gift certificates. The final approval is due to take place on 25 August this year.