When it comes to brand awareness, few businesses are as big a household name as Apple. From humble beginnings to its modern-day status as a tech giant, Apple has been at the forefront of technological innovation for many years now. With PC products, such as the Apple I, that served as pioneers in the industry to the universally loved iPhone, the business has set industry standards and generated a loyal following of users who can’t wait to get their hands on new releases.
However, although Apple has seen such incredible success over the years, it has also led to it having to face intense scrutiny – and rightly so. Indeed, the business found itself in hot water following a major controversy surrounding something often referred to as Batterygate, in which allegations arose suggesting that Apple was intentionally slowing down older iPhone models. This controversy has led to lots of discussions about transparency and trust when it comes to the brands to which we hand our hard-earned money, with many people believing that Apple was doing this to encourage its customers to pay to upgrade to newer models.
So, what really happened with Batterygate, and what does it mean for the future of Apple?
What Is Batterygate?
Batterygate started in late 2016 after the release of iOS 10.1.1. As the update was pushed out to older phones, reports started to emerge that users were experiencing battery issues insomuch that significant slowdowns were commonplace, as well as strange occurrences with devices shutting down once battery levels reached 30%.
Of course, the immediate reaction didn’t seem to imply that most users believed this was an intentional move by Apple. Rather, many simply believed that the update contained bugs that were impacting certain older models.
The situation that caused major issues for Apple occurred when Geekbench conducted some research and then made a report that highlighted performance degradation on specific iPhone models that had been upgraded past certain iOS updates.
However, Apple continued to state that it initially believed these problems had been caused by iOS bugs, although it did issue an apology.
What Did the Evidence Say Apple Was Doing?
Although Apple continued to argue that it believed issues with old phones were caused by iOS bugs, it went on to make an admission that was not received well by the public. It turned out that many users were correct in their belief that Apple had sent an update that intentionally slowed down older devices.
As part of an apology letter, Apple stated that “we delivered a software update that improves power management during peak workloads… in some cases, users may experience longer launch times for apps and other reductions in performance”.
Ultimately, this was an admission that Apple had pushed updates that would intentionally reduce the performance of certain older models. Whether the intent of improving power management during peak workouts was genuine, it was the lack of transparency and subsequent initial denial of it that made users angry.
The problem for many owners of affected phones is that they saw Apple’s intentional performance reduction as an attempt to encourage them to spend money on newer iPhone models, which has been termed “planned obsolescence”.
What Were the Consequences for Apple?
It’s fair to say that Apple scrambled to get ahead of the situation quickly. Its initial offer was to provide discounted battery replacement for the iPhone 6 and newer models throughout 2018. However, this was seen as an insulting offer by many.
Next, Apple looked to show it was intent on being transparent about performance in the future. To do this, an update was pushed to iPhones that displayed battery health, so users could see how their batteries were performing over time. Apple then issued credits to customers who had bought out-of-warranty battery replacements for the iPhone 6 and newer models in 2017.
The biggest updates occurred when multiple class-action lawsuits were filed against Apple due to a lack of transparency and alleged deceptive trade practices. Things didn’t go well for the company and a settlement was reached whereby affected users could claim compensation of around $65. In August 2023, it was confirmed that Apple would be paying out approximately $500 million in this settlement alone. While $500 million is pocket change for Apple, this news is significant for iPhone users, ranging from those who use their model for business to those who use it for the camera, and even to those who just like using PayPal casinos.
Furthermore, Apple also had to pay a €25 million settlement following an investigation by French consumer authorities, as well as another $113 million fine from a separate investigation from 34 states and the District of Columbia.
What Will This Mean for Apple in the Future?
The Batterygate controversy has been a serious issue for Apple and is likely to have major implications for both the immediate and long-term future of the company and the overall industry.
Reputation
Undoubtedly, one of the biggest problems for Apple is that this situation has damaged its reputation. The lack of transparency followed by poor attempts to deny what was really going on has left a sour taste in many mouths.
Transparency
Going forward, Apple will need to be more transparent about updates to users’ devices. This doesn’t just concern Apple – other brands will need to take note to avoid something like this happening again in the future.
Scrutiny
Apple and similar brands are likely to come under greater scrutiny after this situation, which could impact how the industry operates in the future.
Consumer Awareness
Such incidents help to make customers aware that brands aren’t always forthcoming with the truth. Although this isn’t reserved for Apple, the company could find that users are less trusting of it in the future.
Legal Landscape
So many successful class-action lawsuits could potentially encourage law changes to protect consumers more in the future.
Competitors
For Apple, this situation could be an opportunity for its competitors to try to take advantage of. For example, a rival brand may use transparency as a marketing tool.
