Remember when the iPhone 4 was released in June of 2010, and it seemed like everyone had reception issues due to “antennagate”? It all might feel like a distant memory by now; however, one of the class-action lawsuits just reached a preliminary settlement with Apple.
The suit, which was actually 18 consolidated lawsuits, accused Apple of “misrepresenting and concealing material information in the marketing, advertising, sale and servicing of its iPhone 4 –- particularly as it relates to the quality of the mobile phone antenna and reception and related software.”
What does the preliminary settlement include? People (U.S. residents only) who purchased the iPhone 4 are given the choice of either $15 in cash or a bumper case provided by Apple (the same bumpers that it provided to customers affected in 2010.)
Now, you might think that this is not a fair settlement to the consumers; however, you have to remember that Apple estimated during its 2010 Q3 earnings call that the free bumpers would cost the company $175 million in lost revenue during Q4 2010.
Add the $175 million to what you think this settlement is going to cost Apple, now that is quite a large sum of money.