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Apple is talking to 'government agencies' about iPhone slowdowns

01 February, 2018, 00:50 | Author: Jan Cross

According to Bloomberg News, citing sources with knowledge of the matter, the US Department of Justice and the Securities and Exchange Commission have requested information from Apple as part of a probe into whether or not the company's not-so-helpful update violated securities laws.

While it's true that the slowdown has angered consumers, U.S. investigators are more concerned that the company could have misled investors about the performance of older phones.

Yesterday Apple received questions from the United States government on throttling old iPhones, and today they've released a statement.

Mirroring Apple's earlier statements, the company spokeswoman added that they would never do anything to intentionally shorten the life of any Apple product in order to get people to upgrade to newer ones.

Late previous year, Apple confirmed that it is intentionally slowing down phones with older batteries to prevent performance issues.

Concerns among investors that the sales outlook for the company's iPhone X may not be so bright has led to a recent decline in the share price of Apple Inc.

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"We've been hearing feedback from our customers about the way we handle performance for iPhones with older batteries and how we have communicated that process", the statement read. Barclays set a $174.00 price target on shares of Apple and gave the company a "neutral" rating in a research report on Thursday, January 18th.

Apple confirmed how the fix works, and followed up by dropping its $79 battery replacement price down to US$29 for any iPhone.

Apple's "Batterygate" woes won't seem to go away.

A perceived lack of exciting new technologies in the iPhone X has also hindered sales, despite Apple introducing a facial recognition technology called Face ID which enables users to unlock their phones by looking at the screen. Problem is, when it rolled out the said update, it didn't fully disclose that the slowdown would occur. Apple usually unveils the new version of iOS at its WWDC developer conference in June.

Furthermore, the company has promised more transparency regarding when a device is being actively slowed down due to battery health and will offer customers the option to disable the feature via a software update. Over half of intended buyers labeled the iPhone as their top choice, regardless of the specific model they were actually planning to purchase.

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